Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened?
On this day in 2000, the Barron’s cover story “Burning Up” called the peak of the dot-com bubble just 10 days after the Nasdaq hit its top.
Where The Market Was
The Dow finished the day at 10,680.24. The S&P 500 finished at 1,456.63. Today, the Dow is trading at 32,200 and the S&P 500 is trading at 3,947.
What Else Was Going On In The World?
In 2000, the state of Vermont legalized civil unions for same-sex couples. Microsoft Corp. founder Bill Gates stepped down as CEO of the company. A postage stamp cost 33 cents.
Calling The Top
Recognizing market tops in real time can be nearly impossible, but Barron’s came within 10 days of pegging the bursting of the dot-com bubble back in 2000.
“Dozens of internet companies are likely to implode this year as they burn through their cash,” the March 20 cover of Barron’s said. The Nasdaq Composite hit its dot-com high of 5,048 just 10 days before on March 10, but had already dropped 8.7% over the 10-day stretch.
In the article, columnist Jack Willoughby stated his belief that the bursting of the bubble was imminent.
“For scores of 'net upstarts, that unpleasant popping sound is likely to be heard before the end of this year,” Willoughby said.
A year after the Baron’s article, the Nasdaq had fallen another 59.7%, and it would not make another new all-time high for 15 years.
Related Links:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
