An outbreak of accounting scandals, (Arthur Andersen, Adelphia, Enron, and WorldCom) was also a factor in the speed of the fall, as numerous large corporations were forced to restate earnings (or lack thereof) and investor confidence suffered.
The September 11 attacks also contributed heavily to the stock market downturn, as investors became unsure about the prospect of terrorism affecting the United States economy.
The International Monetary Fund had expressed concern about instability in United States stock markets in the months leading up to the sharp downturn.
While the bear market began in 2000, by July and August 2002, the index had only dropped to the same level it would have achieved if the 10% annual growth rate followed during 1987–1995 had continued up to 2002.
However, the markets rose sharply over the rest of the week, and eventually surpassed Dow 9000 during several trading sessions in late August.
As of September 24, 2002, the Dow Jones Industrial Average had lost 27% of the value it held on January 1, 2001: a total loss of 5 trillion dollars.