WhyItDropped

Nasdaq · April 18, 2000

The bounce after the April crash

+7.19%

single-day change vs previous close

Part of a longer stretch

The eleven weeks when the bubble first broke

midway through · 2000-03-10 → 2000-05-23, -37.32% over the whole period

What happened that day?

  • On 18 April 2000 the Nasdaq rose 7.19% in a single day
  • Through 14 April the Nasdaq had fallen hard for five sessions as the dot-com bust got going
  • After that fall, earnings came in less bad than feared and bargain buyers stepped in
  • At the time opinion was still split on whether this was a correction or a collapse, so every bounce drew buyers
  • It turned out to be a collapse, and bounces like this repeated — each from a lower level
  • The Nasdaq's low came two and a half years later in October 2002

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.