U.S. stock market loses $5 trillion in value in three weeks.
The S&P 500′s rapid 10% decline from a record high into correction territory has wiped out trillions of dollars in market value.
The market value of the S&P 500 at its Feb. 19 peak was $52.06 trillion, according to FactSet. Thursday’s decline put the index’s market value down to $46.78 trillion.
Another contributing factor to the decline appears to be the unwind of the growth trade related to artificial intelligence. Since Feb. 19, Nvidi is down 17% and the Roundhill Magnificent Seven ETF (MAGS) has fallen 16%.
The run up in those AI-related stocks before the correction had raised concern that the stock market was too richly valued, with several names at times having their own market caps above $3 trillion. Even now, the S&P 500 is trading at 24.1-times its trailing 12-month earnings, according to FactSet, which is well above its long-term average.
Source: CNBC
