WhyItDropped

Nasdaq · March 25, 2004

A bounce inside the rate-rise worry

+3.02%

single-day change vs previous close

Part of a longer stretch

The advance that stopped when rates turned

early in it · 2004-01-26 → 2004-08-12, -18.63% over the whole period

What happened that day?

  • The Nasdaq rose 3.02% on the day
  • It was a bounce inside the two-month slide that had run since the January high
  • The market's focus here was employment. If jobs grew, the calculation went, the Fed would start raising rates
  • Better employment cut both ways for shares. The economy improves, but the price of money goes up
  • The Fed did begin raising that June, and the Nasdaq kept sliding into August

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.