Nikkei 225 · July 21, 1970

Two months on from the spring low

+3.93%

single-day change vs previous close

Part of a longer stretch

Recovery after the squeeze eased

early in it · 1970-05-27 → 1971-06-15, +31.74% over the whole period

What happened that day?

21 July 1970 — the Nikkei 225 rose 3.93%. No single cause for that one day could be pinned down
That spring's decline ended in late May. This day sits in the retracement after it
The spring decline was a credit squeeze. A large American railroad ran out of money and an international investment company collapsed
Japan was in a tightening cycle. As the pressure began to ease, prices came back quickly
Exports were still strong, so company earnings were not the problem. The problem was funding, not value
The retracement ran to June the following year and regained the old high
From the early-April high to the late-May low the index fell 23.86%

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 put together from the public record; where a specific source was consulted it is listed above.