Large-cap US equity indices made their last all-time highs at the end of January on 1/28, which was also the last Fed Day. As of 2/23, the S&P 500 was down about 2% since 1/28, while the mega-cap heavy Nasdaq 100 was down 5%.
Within the broader large-cap Russell 1,000 (R1K), the average stock in the index is down just 0.3% since 1/28. But we've seen the market lose about $1.34 trillion in market cap over this time frame. Most of that can be chalked up to the "AI Doom" trade, where groups like Software & Services and Financial Services have been pummeled because of the threat that AI will make them obsolete.
As shown below, Software has seen its market cap fall by nearly $1.5 trillion since 1/28, while Financial Services has fallen nearly $500 billion. Media & Entertainment has also seen a $451 billion drop, followed by Consumer Discretionary Distribution & Retail with a decline of $415 billion.
Combined, these four groups have lost about $2.8 trillion in value.
Below are a series of graphics highlighting recent industry group performance.
Some of the groups that have seen the biggest gains in market cap over the same time frame include Capital Goods, Tech Hardware, Energy, and Pharma/Biotech.
Below is a look at the average stock's percentage change since 1/28 by industry group. Software and Real Estate Management & Development stocks have easily seen the biggest drops at -20%+.
Nine groups have averaged gains of more than 5%, however.
The average Russell 1,000 stock is currently about 19% below its 52-week high. Four groups are at -30%: Software, Real Estate Management & Development, Commercial & Professional Services, and Media & Entertainment. On the flip side, the average Utilities stock is less than 5% from its 52-week high.
If you're interested, below is a look at the twenty largest stocks in the Russell 1,000, along with each one's current distance fromits 52-week high. Of the $1+ trillion companies, Microsoft (MSFT) is in the biggest drawdown at -30.8%, followed by Amazon (AMZN), Meta (META), Broadcom (AVGO), and Tesla (TSLA) - all around -20%. Oracle (ORCL) is the farthest from 52-week highs of the names listed at -59%, while Johnson & Johnson (JNJ) is the closest at just -1%.
Comments
Log in or sign up to join the conversation.