Nasdaq · July 24, 1996
The summer 1996 tech correction
-16.55%
peak-to-trough, the whole slide
34 trading days · 1996-06-05 → 1996-07-24
back to the old high on 1996-10-07
What happened that day?
- From the 5 June 1996 peak to the 24 July low the Nasdaq fell 16.55% — 34 trading days
- Internet listings had been increasing since 1995 and tech shares had run up a long way
- When employment data came in stronger than expected, worry grew that the Fed would raise rates
- Good economic news hurting share prices sounds odd, but it works through the odds of a rate rise
- Profit warnings from semiconductor and telecom companies arrived at the same time and deepened the fall
- The Fed did not hike and the recovery was quick. The old high returned on 7 October
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.