Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
On Jan. 14, 2000, the bull market ended as the internet bubble peaked.
Where The Market Was
The S&P 500 struck an intra-day high of $1,473, while the Dow Jones Industrial Average hit $11,750.28.
What Else Was Going On In The World
Bill Gates stepped down as Microsoft Corporation (NASDAQ: MSFT) CEO the day before, and Mark Cuban had recently purchased a majority stake in the Dallas Mavericks
The Internet Begins To Crash
The Dow closed at a record $11,722.98 after riding the excitement of accelerated technological innovation. One day earlier, Federal Reserve Chairman Alan Greenspan had spoken caution of recent U.S. prosperity.
“These extraordinary achievements continue to be bedeviled by concerns that the so-called New Economy is spurring imbalances that at some point will abruptly adjust, bringing the economic expansion, its euphoria, and wealth creation to a debilitating halt,” Greenspan said.
As he suggested may have been the case, the gains made in the Dow and NASDAQ were not sustained, although the NASDAQ wouldn’t peak until March. Their growth had been largely attributable to a handful of tech stocks, and a majority of their constituents recorded declines.
Through the next two and a half years, the Dow plunged nearly 40 percent, although the tech-heavy NASDAQ suffered worse. The market took six years to reclaim its Jan. 14, 2000, position.
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