S&P 500 · January 24, 2000
A January stuck on rates
-2.76%
single-day change vs previous close
What happened that day?
- On 24 January 2000 the S&P 500 fell 2.76%
- The Fed had raised three times in 1999 and looked set to keep going in 2000
- The reason was an economy that was too strong. Unemployment was at a thirty-year low and wages were rising
- Raising rates to cool that weighs on stocks, and weighs more in a market where a lot of stock is bought on credit
- No single trigger can be pinned to this day
- The Fed kept raising into May, and the market broke after that last hike
- In this stretch the index was 9.25% below its peak
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.