We report the direct observation of a type of rainbow caustic, In contrast
to known examples, this caustic originates from a dissipative, stochastic p
rocess. We have observed this when using cold Rb-87 atoms bouncing inelasti
cally on an evanescent-wave atom mirror. The caustic appears as a sharp pea
k at the lower edge of an asymmetric velocity distribution of the bouncing
atoms. The stochastic process is a spontaneous Raman transition due to phot
on scattering during the bounce. The results are in good agreement with a c
lassical calculation.