Nasdaq · February 25, 2021
Yields jumped and growth stocks paid
-3.52%
single-day change vs previous close
What happened that day?
- On 25 February 2021 the Nasdaq fell 3.52%
- The ten-year Treasury yield spiked during the session, set off by weak demand at a government bond auction
- Higher rates shrink the present value of profits that arrive far in the future — which is exactly how tech company profits are shaped
- So on the same day, banks and energy, which earn their money now, fell less or rose
- Yields were rising because the economy was expected to improve, so it was not simply bad news. The problem was the speed
- From the peak the index was down 10.54% and recovered over the spring
- This is roughly when the rotation between growth and value became a regular topic
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.