WhyItDropped

Nasdaq · June 1, 2012

The day the jobs report broke

-2.82%

single-day change vs previous close

Part of a longer stretch

Spanish banks and a second Greek election

near the end of it · 2012-03-26 → 2012-06-01, -12.01% over the whole period

What happened that day?

  • The Nasdaq fell 2.82% on the day — the bottom of this correction
  • The US May jobs report came in far weaker than expected, with earlier months revised down as well
  • Spanish bank losses and the unease over a second Greek election were running at the same time
  • The effect of the winter's long-term loans to European banks had also worn off by this point
  • From here the market began expecting the Fed to add support — the calculation that worse data means larger stimulus
  • A third round of bond buying did come that September, and the ECB president's remark changed the board that summer

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.