WhyItDropped

Nasdaq · October 3, 2001

The post-9/11 rebound

+5.93%

single-day change vs previous close

Part of a longer stretch

The three and a half months after the attacks

early in it · 2001-09-21 → 2002-01-04, +44.70% over the whole period

What happened that day?

  • On 3 October 2001 the Nasdaq rose 5.93% in a single day
  • 21 September had been the low of the 9/11 shock, and the market was in recovery
  • The Fed had been cutting repeatedly since immediately after the attacks, supporting the market
  • Large government spending and support for the airline industry played a part too
  • Data showing that economic activity was normalising faster than feared spread relief
  • The bounce did not last. The Nasdaq fell further until October 2002

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.