All major indices declined in the last three weeks
The S&P 500 and the Nasdaq had their fourth consecutive negative week in a row, while the Dow had its worst week since March 2023. In the last three weeks alone, the market has shed about $5.28 trillion in value.
Though stocks made small gains Friday, the index tracking the performance of 500 of the largest companies listed on stock exchanges has plunged 10% in the last three weeks. S&P 500 peaked at $52.06 trillion on February 19 but now sits at $46.78 trillion.
The smaller index, Russell 2000, has fallen 18% since its November peak.
The fall is primarily driven by:
- Concerns over US economic growth as inflation remains and consumer spending slows.
- President Trump’s erratic policy moves, like higher tariffs and mass federal layoffs.
- The slowdown in the AI boom as investors navigate competition from low-cost AI models like China’s DeepSeek.
AI chipmaker Nvidia’s stock is down 17% from last month, and the Magnificent Seven—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla—has dropped 16%.
Investors are now watching closely to see if the correction stabilizes or deepens. Correction is a decline of 10% or greater in the price of a security, asset, or financial market.
Meanwhile, gold hit $3,000 for the first time yesterday as investors seek safer assets.