Nasdaq · October 9, 1998
The place where the fear ran out
+5.17%
single-day change vs previous close
Part of a longer stretch
The Nasdaq's snap-back after LTCM
early in it · 1998-10-08 → 1998-11-27, +42.09% over the whole period
What happened that day?
- The Nasdaq rose 5.17% on the day — the largest single gain of this recovery
- **No single cause for that day has been pinned down.** What is established is that this bounce began a two-month recovery
- Over the previous two months Russia had declared it could not pay its debts, and a large US hedge fund had failed in the aftermath, with banks stepping in together to wind it down
- The session before had fallen hard and then turned within the day. That shape often appears where the people who were going to sell have finished
- A week later the Fed cut rates without waiting for a scheduled meeting, and the recovery set
- This stretch was a steep recovery in under two months
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.