S&P 500 · November 23, 1998
The rally after LTCM
+24.12%
trough back to the old high
59 trading days · 1998-08-31 → 1998-11-23
this undid the slide that began 1998-07-17
What happened that day?
- From the 31 August 1998 low to 23 November the S&P 500 rose 24.12% — 59 trading days
- It undid the decline that began with Russia's default and LTCM's collapse
- The Fed cut three times in two months, one of them an emergency cut on a day with no scheduled meeting
- LTCM was wound down in an orderly way by the banks that took it over, and the fear of a chain of failures went away
- The US economy itself was fine. The problem was an accident inside the financial markets, and once it was fixed things snapped back
- The old high returned on 23 November, and the market went straight into the final phase of the dot-com bubble
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.