WhyItDropped

Nasdaq · April 6, 2020

The companies lockdown actually helped

+7.33%

single-day change vs previous close

Part of a longer stretch

The Nasdaq's COVID rebound

early in it · 2020-03-23 → 2020-06-08, +44.66% over the whole period

What happened that day?

  • The Nasdaq rose 7.33% on the day
  • Over the weekend, figures from Europe and New York showed the growth in new cases slowing
  • But the Nasdaq recovered faster than other indices for a separate reason: what its members actually did fitted the lockdown
  • Video calls, online shopping, cloud services and games all sell more the longer people stay home
  • The pandemic was bad news and good news at once for these firms, and the market started pricing that within weeks
  • The Nasdaq regained its previous high on 8 June, more than two months ahead of the S&P 500

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.