The U.S. market experienced a 3% decline — the largest single-day drop since September 13, 2022. Over two days, the market fell 4.8%, a decline only surpassed by the 6.7% drop on June 13, 2023, and the more severe drops seen during the COVID-19 pandemic. The three-day drop reached 6.1%, marking the most significant decline since June 13, 2022 (8.9%), and May 9, 2022 (7.2%).
From the previous day's close to the intraday low on August 5, the market collapsed by 4.25%. The last time a comparable or larger decline occurred was on September 13, 2022, when it fell by 4.6%.
Comparable Trading Sessions Since 2020
There have only been 15 comparable trading sessions since 2020 (11 days in 2020, 0 days in 2021, 4 days in 2022, and none since 2023), and only 7 trading sessions from 2011 through 2019 when the market fell 4.3% or more from the day's high.
From the intraday high on July 16 to the intraday low, the decline was 9.7%, and 8.5% at the close of the day, a milder version of the correction than the mild washout in October 2023, when the decline was 11% at the low and 10.3% at the close of the day.
The capitalization of S&P 500 companies is estimated at $46.2 trillion, while the total capitalization of all public companies under U.S. jurisdiction is approximately $53 trillion.
Overall Market Losses
Total losses for all companies are estimated at $5 trillion from the July high to the close of the day, and over $5.7 trillion when considering the minimum and maximum values. The current market capitalization remains close to the highs of March 2024, when the market was valued exceptionally high.
There has been a sharp rise in volatility — a typical pattern for a heavily declining market — and a rise in trading volume about 1.8 times the average of the last 30 days, but not a record, although close to it when measured in monetary terms.
Conclusion
In conclusion, the U.S. market experienced a significant downturn, with a one-day drop of 3%, the largest since September 13, 2022. Over two days, the market declined by 4.8%, and over three days, it reached 6.1%. From the previous day's close to the intraday low on August 5, the market fell by 4.25%. Such declines have been rare, with only 15 similar sessions since 2020. The total loss in market capitalization is estimated at $5 trillion from the July high. Current market capitalization remains near the highs of March 2024, and increased volatility and trading volume indicate a severe market decline.