Nasdaq · June 14, 2001
The summer rate cuts stopped working
-3.66%
single-day change vs previous close
Part of a longer stretch
A summer slide and a September shock
early in it · 2001-05-22 → 2001-09-21, -38.49% over the whole period
What happened that day?
- 14 June 2001 — the Nasdaq fell 3.66%. No single cause for that one day could be pinned down
- Technology warnings kept arriving, worst in telecom equipment and semiconductors
- The Fed had been cutting since January. Prices fell anyway, because the problem was earnings rather than the price of money
- When there is already too much equipment installed, cheap borrowing does not make anyone buy more
- The episode low came on 21 September. From the February high to there the index fell 44.25%
- And that was not the end. The Nasdaq's final low came in October 2002
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.