WhyItDropped

Nasdaq · January 31, 2022

Closing out a brutal January

+3.41%

single-day change vs previous close

Part of a longer stretch

The 2021–22 tech bear market

early in it · 2021-11-19 → 2022-12-28, -36.40% over the whole period

What happened that day?

  • On 31 January 2022 the Nasdaq rose 3.41%, on the last session of the month
  • January had been the worst since 2008, because the Fed had signalled it was changing direction
  • Month-end brings rebalancing trades, which buy whatever has fallen most
  • A large bounce after a large fall is ordinary inside a downtrend. It does not mean the direction changed
  • No single trigger can be pinned to this day
  • In this stretch the index was 29.85% below its peak
  • It kept falling until December that year

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.