Nasdaq · August 12, 2004
The advance that stopped when rates turned
-18.63%
peak-to-trough, the whole slide
138 trading days · 2004-01-26 → 2004-08-12
still below that peak today
What happened that day?
- From the high on 26 January 2004 to the low on 12 August, the Nasdaq fell 18.63% over 138 trading days
- The previous year's rise rested on the premise that rates were at the floor, and that premise moved
- The Fed began raising in June, starting from one percent and going on without pause for two years
- Oil passed forty dollars a barrel. Chinese demand was growing fast and Iraq remained unsettled
- Semiconductor firms said inventory was building, which weighed on technology shares in particular. Orders really were slowing
- Technology fell more than the wider market here. When rates rise, shares priced on distant future profits are marked down first
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.