S&P 500 Erases $2 Trillion in 40 Minutes After Democratic Midterm Wins
The S&P 500 lost about $2 trillion in market value in 40 minutes on Nov. 5 as U.S. stocks reversed a postelection rally, according to The Kobeissi Letter. The firm also estimated the index erased $2.2 trillion over 55 minutes, with losses exceeding the prior day postelection gain. The figures track market capitalization, not realized investor losses. Wall Street sold off broadly after Democrats won control of Congress. AP election coverage confirmed Democratic majorities in the House and Senate. AP market coverage showed the S&P 500 down 3.5%, the Dow Jones Industrial Average down 2.7% and the Nasdaq Composite down 4.7%. Technology shares led the retreat. Nvidia fell 7.5%, Advanced Micro Devices dropped 14.6% and CoreWeave declined 12.1%, according to AP figures. The Nasdaq 100 and broader technology sector also came under pressure as chip-related losses spread. Investors weighed higher financing costs, data-center spending plans and possible congressional scrutiny of artificial intelligence. Higher financing costs can weaken the economics of capital-intensive infrastructure projects. Neither concern showed that Democrats had enacted new AI restrictions. No definitive policy announcement tied the election result to the selloff. The election coincided with existing pressures rather than establishing a single cause. Bitcoin also weakened. CoinMarketCap data showed the cryptocurrency near $76,077 during the Thursday session, with a 24-hour range of roughly $75,581 to $80,875. Trading volume over 24 hours was about $45.22 billion, a measure of transactions rather than investor withdrawals. The move underscored how quickly the prior session rebound had reversed. Traders watched prior levels near $75,600 and the $80,000 recovery threshold; neither guaranteed support or resistance. Crypto trades continuously, while U.S. equities follow exchange hours, complicating intraday comparisons. Bitcoin ETF flows offered a different signal. Farside Investors data showed $74.6 million in net inflows on Nov. 4. Fidelity FBTC drew $236.7 million, while BlackRock IBIT recorded $201.2 million in withdrawals. The prior three sessions had net outflows. Those subscriptions preceded the Thursday equity selloff, and no final Nov. 5 ETF figure was available in the cited daily table at the time of review. ETF flows measure fund creations and redemptions, not instantaneous price changes. The next completed session would show whether institutional demand held during the Thursday downturn. Attention now turns to the October employment report scheduled for Nov. 6 at 8:30 a.m. Eastern Time, the next major U.S. catalyst. The Bureau of Labor Statistics set the release for that time. Traders can compare it with updated equity prices, Bitcoin trading and finalized ETF flows. A sharp one-day decline does not by itself put an index in a bear market, which is measured against a prior peak. This article is for informational purposes only and does not constitute financial advice. Stock and cryptocurrency markets are volatile, and market projections carry financial risks. The post appeared first on The Market Periodical.
