Economic security

Almost 40% of the market value created during the Trump rally is gone

It’s been an ugly couple of weeks for the stock market.

After dropping 5% for the week ending March 23, stocks jumped 3% on Monday and gave almost all of this back on Tuesday. Markets are now sitting just above where they were in early February when the market dropped 10% in just a few days.

And with this past week’s latest leg lower being led by big tech names — notably Facebook (FB) — the total market cap the S&P 500 has shed since late January is now over $2 trillion. This drop has also erased almost 40% of the market cap gains the S&P has enjoyed since President Donald Trump was elected to office.

“From Election Day 2016 through the S&P 500’s last all-time high on January 26th, the index added $6.3 trillion in market cap to take its total market cap up to $25.46 trillion,” analysts at Bespoke Investment Group said in a blog post published Tuesday.

“Since the high on 1/26, the index has now lost $2.34 trillion in market cap, bringing the total down to $23.12 trillion. This means that 37% of the post-Trump gains in market cap have been erased during the current market pullback.” (Emphasis ours.)