WhyItDropped

Nasdaq · October 7, 1996

The autumn 1996 recovery

+20.00%

trough back to the old high

52 trading days · 1996-07-24 → 1996-10-07

this undid the slide that began 1996-06-05

What happened that day?

  • From the 24 July 1996 low to 7 October the Nasdaq rose 20% — 52 trading days
  • It undid that summer's tech correction
  • The main reason was simply that the feared rate rise never came
  • Inflation was steady so the Fed had no need to move, and the economy kept growing
  • Stable prices with a strong economy is about the best combination stocks can get
  • The old high returned on 7 October, making this one leg of the run that continued to 1999

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.