$2.5T has been wiped from US stocks

bell-cot

Similar to the old saw about you owning the bank $10 thousand vs. $10 billion, the "value" of stocks does not scale.

novaRom

Selling AI stocks before year-end makes sense, right? New Congress, new House take over in January. Cost of living so tax hikes next year. Better to lock in gains now than pay more later? Besides cash is now bringing more than 4% pa

hn_submit

People the AIpocalypse is real !! Brace yourselves for a $10 Trillion wipeout. Anthropic and OpenAI will disintegrate and vanish in the mist. That's all folks!!!

throwaway384034

Looks like the party is over, now for the hangover.

amelius

Can I have my DRAM now?

SwellJoe

As usual, I was right about the market but way too early. I sold all of my AI-exposed stocks last year, as I knew the investment going into it couldn't be recouped in a reasonable time. If I'd held longer, I'd be up about 2x on those shares even if I'd only sold in a panic yesterday. But, it also means I can probably reinvest in some of those stocks now that a correction is in progress. There are some excellent tech companies with strong leadership and strong growth (e.g. ARM) that have been too expensive for a long time; still too expensive, but getting closer to reasonable.

schnuri

I always find these market cap numbers misleading. The US stock market isn't "worth" $2.5T less. If you multiply the marginal share price by the total number of shares, you get a number that's $2.5T lower. That is something different. E.g., if you tried to sell all Nvidia shares at once, you'd never get anywhere near ~$4.5T (just as buying them all would cost far more).

curiousllama

This is definitely scary, but not the end of the world (yet). The S&P500 is still up ~7% YTD, and 5y CAGR of 9.4% before dividends, in line with historical norms. This is primarily a decline in tech: week over week, the S&P is -4.5% (SPX), but the S&P excluding tech is +0.1% (SPXT). Right now, this looks like speculation that tech will reduce capex after Q4 earnings (Nvidia, Micron, Sandisk, AMD all down >2x vs the S&P). But it'll take time to tell; most just announced Q3 a week ago. All this to say: expect volatility, but no need to panic.* *(Unless you're in TQQQ. Then panic.)

foolswisdom

For all the federal election related takes, remember that 1. Market price changes are changes from what was expected before compared to what is expected now. And not even only in regards to the asset itself, but with respect to comparative change in other assets as well. 2. conventional wisdom when the branches of government are divided, less change comes from the government, so you can expect that your expectations for the future will remain stable, and that confidence reduces risk aversion, resulting in higher pricing. Therefore, the market going down cannot be attributed purely to a question of who is in charge, because the democrats can't pass anything unless they get a nice number of Republicans on their (possible I suppose, but I don't think anyone is expecting that right now). But it could be attributed to expectations of what Republicans would do vs now that they can't. Besides, it's basically impossible (or at least for layman, who knows if you're a market maker?) to accurately attribute a day's market behavior to any event, with a compelling causal explanation (sometimes your attribution could also be explained to have the opposite effect than the one you're trying to explain) and not ignoring alternate possible explanations. It's kinda annoying when even otherwise serious people invoke the market movement of a day as an meaningful event that can be explained (notwithstanding that by tomorrow the effect might have reversed). But unfortunately business news like CNBC promotes that kind of thinking.

shevy-java

They are pillaging. It will be a long time required here, investigating all corruption that has been happening. Inflation increase should be viewed as a mafia in charge of a country.

vladmk

2.5 Trillion unfortunately is nothing compared to the debt we're in smh

dudefeliciano

Interesting how the coverage of midterm elections was flagged with many users talking about how politics are not a hacker worthy topic but this somehow seems to be

huqedato

Sell the dip! I'm buying cheap.

hacker_9

April 2025, nasdaq enters bear territory: https://news.ycombinator.com/item?id=43587479 It's interesting reading the panic then in the comments, and yet now the nasdaq is up 65% from those lows, even with today's drop.

jrflo

Sounds scary until you realize that this happens about once per year on average. If this happens again tomorrow and a few more times in the few couple weeks that would be bad, but as of now it's notable but not a huge deal.

ChrisArchitect

Related: Nasdaq plummets 4% into correction territory https://news.ycombinator.com/item?id=50381623

silverFork

Everybody knew it was coming soon.. Some were waiting for anthropic to IPO first. Markets could not wait because of public sentiment.

i_love_retros

America desperately needs January to come around fast. We need some level headed sensible people running the country. We need to elect more socialists to knock these tech companies down hard. Power to the people and fuck all this AI shit.

donohoe

Relax. This happens 2-3'ish times a year. Remember last April when Trump announced tariffs.

outside1234

Don't worry, tomorrow will be worse