WhyItDropped

Nasdaq · April 23, 2001

A setback inside the rally

-4.81%

single-day change vs previous close

Part of a longer stretch

Seven weeks bought by rate cuts

midway through · 2001-04-04 → 2001-05-22, +41.19% over the whole period

What happened that day?

  • The Nasdaq fell 4.81% on the day
  • It came a little over two weeks into the April rally. Days like this appear inside rising phases too
  • Large technology firms were reporting that week, and positions were trimmed ahead of the announcements
  • Results in this period were mostly bad. But the market already knew that, so it watched only how bad, and what was said about the quarters ahead
  • In such a phase shares rise on poor results if the outlook is less poor
  • The rally ran on to 22 May

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.