WhyItDropped

Nasdaq · May 30, 2001

Where the spring rally ended

-4.18%

single-day change vs previous close

Part of a longer stretch

A summer slide and a September shock

early in it · 2001-05-22 → 2001-09-21, -38.49% over the whole period

What happened that day?

  • The Nasdaq fell 4.18% on the day
  • It came a week after the 22 May high. The big spring rally ended here
  • A large telecom and a chipmaker cut their forecasts again, confirming that recovery was still far off
  • The spring rally had risen on hopes of rate cuts, not on better results
  • The market repeated the same mistake in this period — believing the economy would turn once the Fed moved, then giving it back when earnings failed to confirm it
  • The index kept falling into September

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.