WhyItDropped

Nasdaq · January 11, 2001

Expecting more cuts to come

+4.61%

single-day change vs previous close

Part of a longer stretch

Nine months down without a rest

near the end of it · 2000-07-17 → 2001-04-04, -61.66% over the whole period

What happened that day?

  • The Nasdaq rose 4.61% on the day
  • After the surprise cut at the start of January, another was widely expected at the meeting later that month
  • There was no single announcement that day; expectation of more cuts had simply built over several sessions
  • The market swung widely in this period, reacting hard to each piece of news without settling on a direction
  • The Fed did cut again at the end of January, and eleven times that year in all
  • The Nasdaq nevertheless fell further into early April, because this was not a problem rates could solve

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.