More than $10 trillion has been wiped out from the US stock market this year

Someone warned the stock exchange ranger: the bears are picnicking the Wall Street This year.

The 2022 crash wiped out more than $10 trillion in market value from blue-chip stocks in the S&P 500.

The index has fallen almost 18% since the end of December.

The 2022 crash wiped out more than $10 trillion in market value from blue-chip stocks in the S&P 500. (AP)

The S&P 500 is now barely above bear market levels (a 20% drop from a recent closing high) after falling 0.1% on Thursday.

The Dow Jones, which fell about 104 points, or 0.3%, on Thursday, is also down more than 13% this year.

Tech stocks were particularly hard hit.

The Nasdaq managed to pull off a slight gain on Thursday, but it has plunged 27% this year, pushing it deep into bear market territory.

Tech stocks led the slowdown as investors fear inflation. (AP)

Nearly $4.4 trillion of the S&P 500’s market capitalization decline comes from the technology sector.

Shares of tech leaders Apple, Microsoft, Amazon, Google owner Alphabet, Facebook parent Meta Platforms, and Elon Musk’s Tesla are all deep in the red. Netflix, down more than 70%, is the worst performer in the S&P 500 this year.

The rapid fall is also ringing alarm bells on Main Street, with fears the U.S. economy is losing steam after a strong recovery from the depths of the brief pandemic-induced recession.

According to data from research firm Bespoke Investment Group, the Nasdaq has fallen more than 20% in the past 30 trading days.

A currency trader holds his head in the foreign exchange trading room at the headquarters of KEB Hana Bank in Seoul, South Korea, Friday, April 22, 2022. Asian stocks fell on Friday, following losses on Wall Street after Federal Reserve Chairman Jerome Powell has indicated interest rate hikes need to be faster to fight inflation. (AP Photo/Ahn Young-joon) (AP)

A decline of this magnitude has only happened 11 times before – and nine of those declines were “associated with recessions”, according to Bespoke.

Bespoke analysts said in another report earlier this week that the Nasdaq 100, or so-called QQQ, is off to the worst start of any year, ever.

Still, there are hopes that a bottom is in sight soon. Bespoke analysts said “prices can stay oversold…for an extended period of time, but they don’t stay that way forever.”

Investors are waiting for the so-called capitulation, the moment when it seems everyone has finally thrown in the proverbial towel.

When sentiment is seemingly at an all-time low, it might be time to start buying again.

Netflix said it lost 200,000 subscribers in the first three months of the year, when it expected to add 2.5 million. (AP)

The market could almost be at these levels.

The CNN Business Fear & Greed Index, which measures seven indicators of market sentiment, is now well into Extreme Fear territory.

The index ranges from 0 to 100 and lower levels are associated with panic in the market. The index currently registers a level of 6.

The richest people in the world revealed

Leave a Comment