History of Stock market downturn of 2002 in Timeline

By Popular Timelines Editorial Team · Updated: April 28, 2025

The stock market downturn of 2002 was a significant decline in stock prices across major markets including the US, Canada, Asia, and Europe. While there was an initial recovery after the September 11 attacks in 2001, the markets began a steady decline in March 2002. The most dramatic drops occurred in July and September, bringing indices to lows not seen since the late 1990s. The U.S. dollar's value increased against the euro, achieving a 1-to-1 ratio, a level unseen since the euro's launch.

March 2000: Peak Valuation of Listed Companies

In March 2000, the sum valuation of all NYSE-listed companies was $12.9 trillion, and the valuation sum of all NASDAQ-listed companies stood at $5.4 trillion, for a total market value of $18.3 trillion.

January 1, 2001: Dow Jones Losses

As of January 1, 2001, the Dow Jones Industrial Average had already lost 9% of its peak value, indicating the beginning of the downturn.

March 2002: Indices Slide Steadily

In March 2002, after recovering from the lows following the September 11 attacks, indices began to slide steadily, contributing to the overall stock market downturn.

July 23, 2002: Dow Closes Below 8000 and Market Rally

On July 23, 2002, after falling for 11 of 12 consecutive days, the Dow closed below 8000. Subsequently, the market experienced a rally, rising 13% over the next four trading days.

September 24, 2002: Dow Reaches Four-Year Low

On September 24, 2002, the Dow dropped to a four-year low, and the NASDAQ reached a six-year low, marking a significant point in the stock market downturn.

October 2002: NYSE and NASDAQ Market Value

In October 2002, at the market lows, the total market value of NYSE and NASDAQ companies was $9 trillion, reflecting an overall market loss of $9.3 trillion.