04/09/2025

The Dot-com Bust, 1987 Crash had Massive Relief Rallies Similar to Wednesday’s Pop

Similar rallies have only occurred during historically bad stretches for the stock market

The Nasdaq soared 12 percent on Wednesday, the second-best day on record for the tech-heavy index and its sharpest rally since January 2001, which was the middle of the dot-com crash.

During the financial crisis in October 2008, the Nasdaq enjoyed two of its best five days ever. The other two came as the tech bubble was bursting. The index's sixth-best day since its beginning in 1971 came on March 13, 2020, as the COVID-19 pandemic was hitting the U.S.

Of the 25 best days for the Nasdaq, including Wednesday, 22 took place during the dot-com collapse, the 2008-09 financial crisis or the early days of Covid. One occurred on Oct. 21, 1987, two days after Black Monday. The other was in November 2022.

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