S&P 500 companies lost roughly $3 trillion in market value in one session, and the Nasdaq posted its steepest daily drop since the pandemic era. The loss exceeded what the entire cryptocurrency market is currently worth. The Kobeissi Letter argued the selloff appeared more technical than fundamental.
Wall Street lost roughly $3 trillion in S&P 500 market value in a single session, a day after the post-election relief rally. The Nasdaq posted its steepest daily drop since the pandemic era, and the loss topped the current value of the whole crypto market.
S&P 500 loses $750 billion an hour
According to the Kobeissi Letter, the S&P 500 lost about $3 trillion in market capitalization during Thursday's session, roughly $750 billion per hour from the opening bell. Dow Jones Market Data independently put the loss at around $2.9 trillion, the largest single-day wipeout on record for the index's constituents.
Nasdaq companies lost another $2.5 trillion, while the Magnificent Seven shed just over $1 trillion.
Every rebound gets sold
Kobeissi analysts counted at least five intraday rebound attempts in the S&P 500 and the Nasdaq, including a single rally of 1.7%, but every one was sold. The S&P 500 failed to print a single positive one-hour candle during the session.
The Nasdaq 100 dropped around 6.4%, and after-hours futures pushed the 12-hour decline to 7.1%. The S&P 500 was subsequently about $5 trillion below its October peak.
Kobeissi points to leverage
Kobeissi argued that the collapse appeared more technical than fundamental. Concerns about AI profitability, capital expenditure, and potentially tighter regulation had already spooked investors, and record leverage amplified the move once sentiment turned.
US leveraged ETFs attracted roughly $15 billion in October, the largest rolling-month inflow in at least two years.
Source: CryptoPotato
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