The U.S. stock market has lost $5 trillion in value over the past three weeks. The market value of the S&P 500 fell from $52.06 trillion on Feb. 19 to $46.78 trillion on Thursday.
This marks a total loss of about $5.28 trillion. The decline comes amid rising tensions with several major U.S. trading partners. Headlines about tariffs have often driven market movements.
Signs of slowing economic growth, weak consumer sentiment, and tepid corporate outlooks have also contributed to the downturn. Barclays strategist Emmanuel Cau said in a note to clients, “Our interactions with clients indicate that the mood music is changing.
Stock market value decline
While many see recession talk as premature, concerns about erratic policy from the new administration abound, with the ‘uncertainty tax’ hitting growth expectations.”
The unwind of the growth trade related to artificial intelligence appears to be another factor. Since Feb. 19, Nvidia is down 17% and the Roundhill Magnificent Seven ETF has fallen 16%.
The previous run-up in AI stocks had raised concerns that the market was overvalued. The S&P 500 is trading at 24.1 times its trailing 12-month earnings, according to FactSet. This is well above its long-term average.
An earlier version misstated the date and a percentage. The corrected figures are that Nvidia is down 17% and the Roundhill Magnificent Seven ETF has fallen 16% since Feb. 19.
