WhyItDropped

Nasdaq · July 27, 2022

A hint that the pace would slow

+4.06%

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 27 July 2022 the Nasdaq rose 4.06%
  • The Fed raised by three steps for the second month running — a large move
  • But at the press conference the chair said it would likely become appropriate to slow the pace at some point
  • The market heard only that sentence. It read it as the end approaching and rallied hard
  • Through 2022 the market repeatedly bought the idea that the Fed was about to turn. It did so several times that year
  • Every time it was wrong. The Fed kept raising into year end, and this rally broke in late August
  • In this stretch the index was 29.4% 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.