US — Market Value Plummets by $3.4 Trillion Since Election Day

The S&P 500 dropped 1.7% on Tuesday, erasing all gains made since Donald Trump was declared the winner of the 2024 presidential election in November. This decline marks the second consecutive day of significant selling pressure, coinciding with Trump’s implementation of sweeping tariffs on the United States’ largest trading partners.

Since November 6, the day after the election, the total market value has diminished by a staggering $3.4 trillion, according to Bloomberg data.

Other major indexes also experienced declines. The tech-centric Nasdaq Composite fell 1.5%, nearing correction territory, which is defined as being close to 10% below its most recent high. Meanwhile, the blue-chip Dow Jones Industrial Average decreased by 1.8%.

Among the hardest-hit sectors were automakers such as General Motors and Ford, both of which have substantial manufacturing operations in Mexico. Chipotle, which sources approximately half of its avocados from Mexico, saw its stock slip by more than 2%.

Retail giants Target and Best Buy also faced losses. Earlier in the day, the CEOs of both companies warned that the new tariff measures would likely lead to increased prices for consumers.

Other notable companies that experienced significant stock declines included United Airlines, Royal Caribbean Cruises, Citigroup, and Dollar Tree.

In a separate development, Tesla’s stock plunged after reports indicated that sales of its China-made electric vehicles had dropped to their lowest levels since August 2022. The company’s shares are now down about 30% year-to-date.

This widespread sell-off occurs amidst growing signs of a weakening economy. A closely monitored report on monthly manufacturing activity raised warning flags, while consumer confidence indexes indicate that Americans are becoming increasingly cautious about their financial situations.