WhyItDropped

Nasdaq · July 6, 2001

The summer of grinding lower

-3.65%

single-day change vs previous close

Part of a longer stretch

A summer slide and a September shock

midway through · 2001-05-22 → 2001-09-21, -38.49% over the whole period

What happened that day?

  • The Nasdaq fell 3.65% on the day
  • The June jobs report showed unemployment rising. Large-scale layoffs at technology firms were showing up in the numbers
  • That summer ground lower without any large event. Days of ten percent moves like the spring became rarer
  • This kind of phase is more wearing. Nothing collapses; recovery just keeps being postponed
  • The US economy was already in recession by then, though it was only confirmed later
  • The attacks of 11 September landed on top of this

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.