US Stock Market Loses Over $1 Trillion This Week, Hits Record Low After Five Consecutive Weeks of Decline; 'Seven Giants' Lose Approximately $87 Billion

On March 28, the S&P 500, Nasdaq, and Dow Jones indices all fell this week, marking the longest consecutive five-week decline since 2022. The combined market value of the ‘Seven Giants’ in technology shrank by approximately $87 billion in just one week, with the Nasdaq down over 13% from its peak last October. This week, the US stock market weakened significantly under multiple negative pressures. By Friday’s close, the Dow Jones fell sharply by 793 points, the S&P 500 dropped to a seven-month low, and the Nasdaq further entered a technical correction zone. The average maximum drawdown for the 500 stocks in the S&P 500 has reached 17%, while the average maximum drawdown for Nasdaq stocks is even higher at 31%, indicating that the actual damage is far worse than what the index numbers suggest. The technology sector has been hit hardest. Meta plummeted about 12% in one week due to a combination of losing two lawsuits related to child safety and news of layoffs; Tesla and Amazon also saw declines of over 3%; Nvidia fell nearly 5% due to shrinking expectations for AI capital expenditure. The total market value of the ‘Seven Giants’ decreased by about $87 billion over the week, equivalent to over 6.3 trillion yuan. From a market structure perspective, the breadth and depth of this decline should not be underestimated. Although the major indices fell between 7% and 13%, more than half of the stocks have retreated over 20% from their respective peaks, entering a technical bear market.