Nasdaq · March 7, 2022
How oil hit tech
-3.62%
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 7 March 2022 the Nasdaq fell 3.62%, more than the S&P 500 that day
- The trigger was the oil spike on talk of banning Russian crude
- Technology companies do not use much oil. They fell further anyway, because of rates
- Dearer oil means higher inflation, and higher inflation means the Fed raises more
- The further a company's profits sit in the future, the more a higher rate cuts their present value. The Nasdaq is full of such companies
- So a piece of energy news moved the companies that use the least energy the most
- In this stretch the index was 33.7% 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.