WhyItDropped

Nasdaq · October 19, 2000

The day one result turned it around

+7.79%

single-day change vs previous close

Part of a longer stretch

Nine months down without a rest

midway through · 2000-07-17 → 2001-04-04, -61.66% over the whole period

What happened that day?

  • The Nasdaq rose 7.79% on the day
  • One large technology company reported far above expectations, halting for a day the slide that had run through October
  • The market in this period swung hard on single results. With no view of the whole picture, it clung to the number in front of it
  • October is when reporting clusters, so the direction changed sharply from day to day
  • Bounces like this came repeatedly and every one led to a lower low. That is the signature of this nine-month phase
  • The index kept falling afterwards and bottomed in April of the next 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.