Nasdaq · September 8, 1998

The rate-cut hint on the Nasdaq

+6.02%

single-day change vs previous close

Part of a longer stretch

The Russia shock on the Nasdaq

midway through · 1998-07-20 → 1998-10-08, -29.55% over the whole period

What happened that day?

On 8 September 1998 the Nasdaq rose 6.02% in a single day
The market that had crashed through August on Russia's default and LTCM was turning
The Fed chair hinted at a rate cut, citing global economic risks
The Nasdaq rose more than the S&P 500 because it had been sold harder in the panic
In a crisis the riskiest assets go first, and when it calms they come back first
The old high returned on 27 November, running straight into the big 1999 advance

Sources

Long-Term Capital Management
Dot-com bubble

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.