WhyItDropped

Nasdaq · September 1, 2010

The day hopes for a second round of QE grew

+2.97%

single-day change vs previous close

Part of a longer stretch

Ten months the second round of QE bought

early in it · 2010-07-02 → 2011-04-29, +37.37% over the whole period

What happened that day?

  • The Nasdaq rose 2.97% on the day
  • The August manufacturing survey came in better than expected, easing the summer-long worry about a second recession
  • At the same time expectations were building that the Fed would buy more government bonds, after its chair said in August that it would if needed
  • That combination is the market's favourite picture — an economy that is not breaking alongside support that continues
  • The Fed did begin its second round of bond buying in November, and the Nasdaq rose into April of the next year
  • The advance of this period came more from the quantity of money than from earnings

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.