WhyItDropped

Nasdaq · October 27, 2004

The day oil turned back

+2.14%

single-day change vs previous close

Part of a longer stretch

Four months that started when the election ended

midway through · 2004-08-12 → 2004-12-30, +24.30% over the whole period

What happened that day?

  • The Nasdaq rose 2.14% on the day
  • Oil had passed fifty dollars a barrel that autumn, a record at the time. It turned lower that day on a report that stockpiles had grown
  • Oil was the market's largest worry in this period. When it rises, firms face higher costs and households have less to spend
  • For technology it arrives in two steps. Less spending means fewer electronics sold, and that means fewer component orders
  • From this day into year end the Nasdaq kept rising, helped by the election being settled quickly

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.