Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. May 4, 2022. REUTERS/Brendan McDermid

More than $7 trillion disappeared from the stock market this year

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The 2022 crash blew away more than $7 trillion of market value in U.S. blue-chip stocks. S&P 500. The index has fallen more than 18% since the end of December. that much Dow It also fell 13%.
Tech stocks have been particularly hard hit. that much NASDAQ It has plunged 28% this year, entering deep into a bear market. Nearly $3 trillion of the S&P 500’s decline in market cap comes from the tech sector.

The rapid plunge is also sounding alarm bells on Main Street, with concerns that the US economy may lose vitality following a strong recovery from the depths of a brief pandemic-induced recession.

The Nasdaq has plunged more than 20% in the past 30 trading days, according to data from research firm Bespoke Investment Group. According to Bespoke, the decline in magnitude has only occurred 11 times before, with nine of those “recession-related”.

Bespoke analysts said in another report earlier this week that the Nasdaq 100, or so-called QQQ, had its worst start ever.

Still, there is hope that the bottom can be seen soon. Tailored analysts said, “Price can remain oversold for a long period of time, but not forever.”

Investors are waiting for the so-called capitulation, as everyone finally seems to have thrown a towel in the proverbial. When emotions seem to be at their lowest, you can finally start buying again.

The market can be almost at that level. The CNN Business Fear and Greed Index, which measures seven indicators of market sentiment, has now entered the realm of extreme fear. The index ranges from 0-100, with lower levels associated with panic in the market. The index is currently registering 6 levels.

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