Nasdaq · July 20, 1999
The summer rates got in the way again
-3.47%
single-day change vs previous close
What happened that day?
- On 20 July 1999 the Nasdaq fell 3.47%
- The Fed had raised once in June, and the timing of the next hike was the question all summer
- The problem was that the economy was too good. Unemployment was very low, which is the condition for wages to rise
- Technology is especially sensitive to rates — the further into the future a company's profits sit, the more so
- No single trigger can be pinned to this day
- In this stretch the index was down 13.07% from the peak
- The Nasdaq still finished that year up nearly double
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.