Nasdaq · February 2, 2001

Cuts came and the fall continued

-4.39%

single-day change vs previous close

Part of a longer stretch

Nine months down without a rest

near the end of it · 2000-07-17 → 2001-04-04, -61.66% over the whole period

What happened that day?

The Nasdaq fell 4.39% to close at 2,660.50. No single trigger for the day could be pinned down
The United States had already cut rates twice that January. The market kept falling anyway
Because the problem was not the price of money. Too much fibre and too many servers were already installed, with no demand to use them
With capacity in surplus, cheaper money does not create new orders. Cuts only slow the descent
The episode fell 56.63% from the September 2000 high to the April 2001 low
The low was two months away, on 4 April, and another down leg still lay beyond it

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 put together from the public record; where a specific source was consulted it is listed above.