WhyItDropped

Nasdaq · October 4, 2022

One of many bets on a pivot

+3.34%

single-day change vs previous close

Part of a longer stretch

The 2021–22 tech bear market

near the end of it · 2021-11-19 → 2022-12-28, -36.40% over the whole period

What happened that day?

  • On 4 October 2022 the Nasdaq rose 3.34%
  • Australia's smaller hike and a weak US job openings report landed on the same day
  • Two-day surges like this kept recurring through 2022, each leaning on the belief that the Fed was about to stop
  • Bounces are large in a downtrend for two reasons: the sellers are already out, and bets placed on further falls have to be closed
  • So a large bounce is not evidence that the trend has changed. If anything it is characteristic of a downtrend
  • This one collapsed three days later on the jobs report
  • In this stretch the index was 22.2% 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.