WhyItDropped

Nasdaq · June 2, 2000

Relief that hiring had cooled

+6.44%

single-day change vs previous close

Part of a longer stretch

The summer that still believed

early in it · 2000-05-23 → 2000-07-17, +35.08% over the whole period

What happened that day?

  • The Nasdaq rose 6.44% on the day
  • The May jobs report came in weaker than expected, read as meaning the Fed need not raise rates further
  • Shares rising on weak data reflects a market watching nothing but interest rates
  • The bounce that had begun at the 23 May low was confirmed by this report, and the index rose into mid-July
  • The Fed did not raise again after this. Its next move was a cut, in January of the following year
  • Yet the decline continued even after rates stopped. By this point the problem was no longer the price of money

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.