U.S. Market Loses $2 Trillion as Major S&P 500 Stocks Decline

A recent analysis reveals that significant declines in just 10 S&P 500 stocks, including major players like Nvidia, Microsoft, and Amazon, have erased over $2 trillion from investor portfolios since mid-July.

This loss exceeds the total market value of the entire S&P 500 in the mid-1980s.

These substantial losses are concentrated in a few tech giants heavily involved in AI, which had previously driven the S&P 500 to new highs earlier in the year.

Concerns over whether these companies were overvalued have contributed to their steep declines. The combined losses of these 10 stocks represent approximately two-thirds of the $3 trillion drop experienced by the entire S&P 500 during this period, driven by mounting recession fears.

Dan Ives from Wedbush describes the situation as a severe market sell-off, exacerbated by a weaker jobs report and concerns about the Federal Reserve’s delayed actions. The tech sector, in particular, has been at the epicenter of this downturn.

Among the hardest hit, Nvidia has seen its stock fall by around 15% since July 15, resulting in a staggering $461 billion loss— the largest drop for any S&P 500 company since then.

Similarly, Microsoft, despite being a leading player in AI, has experienced a nearly 10% decline in its stock value since mid-July, leading to a $328 billion loss. While still up nearly 8% for the year, Microsoft’s Composite Rating has fallen to 72, reflecting investor concerns.