$5 trillion evaporated from the US stock market in 3 weeks

The S&P 500 index, based on common stocks of the 500 largest capitalization companies listed in the US, on March 13 fell sharply by 10% from its historical peak in February, wiping out $5,000 billion from the US stock market.

A trader reacts while working on the floor of the New York Stock Exchange (New York state, USA) on February 25.

The market value of the S&P 500 index at its peak on February 19 was $52,060 billion, according to CNBC on March 14, citing data from FactSet, a site that tracks US stock market activity.

At the close of trading on March 13, the S&P 500, a gauge of the health of the US economy , had plummeted to $46.78 trillion, down more than 10% from February 19, or about $5.28 trillion in three weeks.

The sharp decline in the S&P 500 index came as US President Donald Trump opened a trade war by imposing tariffs and reciprocal taxes on some of the country's major trading partners.

White House reassures, Wall Street worries about risk of US economic recession

Observers have also noted signs of slowing economic growth, from consumer sentiment surveys to the bleak business outlook for retail giants like Walmart.

"While many believe that it is too early to talk about a recession, there is widespread concern about the new administration's erratic policies," CNBC on March 14 quoted strategist Emmanuel Cau of Barlays.

Another factor contributing to the stock market’s worrisome performance comes from developments in artificial intelligence. Since November 19, 2024, Nvidia shares have fallen 17% in value, and MAGS (an exchange-traded fund that holds seven major US tech names) shares have fallen 19%.

The fact that AI-related stocks hit record highs before plummeting as much as 10% in the past three weeks has led to concerns that the stock market is overvalued, with some reaching market capitalizations of over $3 trillion.

Source: https://thanhnien.vn/5000-ti-usd-boc-hoi-khoi-thi-truong-chung-khoan-my-trong-3-tuan-185250314213702639.htm