WhyItDropped

S&P 500 · June 6, 2008

Oil and unemployment jumped together

-3.09%

single-day change vs previous close

Part of a longer stretch

The Global Financial Crisis bear market

midway through · 2007-10-09 → 2009-03-09, -56.78% over the whole period

What happened that day?

  • On 6 June 2008 the S&P 500 fell 3.09%
  • Oil posted its largest one-day gain to that date, reaching 138 dollars a barrel
  • The jobs report that morning showed unemployment jumping
  • Dearer oil raises inflation, and inflation stops the Fed cutting. The tool for handling the crisis was being taken away
  • Rising prices with a weakening economy is a combination with no easy answer
  • The recovery that began in March ended here. The index fell until October
  • In this stretch the index was 22.95% below its peak

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.