WhyItDropped

S&P 500 · July 16, 2010

When consumer sentiment collapsed

-2.88%

single-day change vs previous close

Part of a longer stretch

The rise the second round of QE bought

early in it · 2010-07-02 → 2011-04-29, +33.35% over the whole period

What happened that day?

  • On 16 July 2010 the S&P 500 fell 2.88%
  • Consumer sentiment that day fell to its lowest in a year
  • Large bank results the same day showed profits, but lending kept shrinking
  • A bank earning money without lending more does not feed the economy. The recovery was not reaching the real world
  • Data like this recurred all summer and kept the double-dip fear alive
  • No single trigger can be pinned to this day
  • In this stretch the index was 15.99% 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.