icon
icon
icon
icon
Upgrade
icon

Nasdaq Plunges with Largest One-Day Drop Since 2022: Market Movements and Seasonality Point to Possible Reasons

AInvestThursday, Jul 18, 2024 4:17 am ET
1min read

The Nasdaq just experienced its biggest one-day drop since 2022. Investors are asking why this sudden drop occurred. What has changed in the last 24 hours?

Mainstream news has offered various reasons to justify the drop, such as comments from Trump, geopolitical concerns, etc. However, if we examine market movements and the historical performance during election years, we might uncover some clues.

 1) Markets move in waves. After a wave up, there is always a wave down. 

 2) Look at the left chart. During Election years (since 1950), the market historically falls on the 3rd week of July. 

And Goldman Sachs also points out that this Wednesday, July 17, has historically marked a turning point for returns on the equities benchmark, citing data going back to 1928. And what follows, is August — typically the worst month for outflows from passive equity and mutual funds.


Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.