WhyItDropped

Nasdaq · May 5, 2022

All of it, given back in a day

-4.99%

single-day change vs previous close

Part of a longer stretch

The 2021–22 tech bear market

midway through · 2021-11-19 → 2022-12-28, -36.40% over the whole period

What happened that day?

  • On 5 May 2022 the Nasdaq fell 4.99%, far more than it had risen the day before
  • No new information had arrived overnight. The same facts were simply recalculated
  • The chair had ruled out a larger step, but the two-step rise itself was already decided
  • And the run-down of the bonds the Fed had bought was due to start the following month
  • Treasury yields rose sharply overnight, and technology took that arithmetic straight
  • A price lifted by relief vanishing in a day is the standard shape of a downtrend
  • In this stretch the index was 32.92% 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.