New York: The S&P 500’s worst week since Christmas makes a grim finale to a May that put a four-month market rally to a halt.
Some $1.7 trillion was yanked from the S&P 500 last month as 10 out of 11 industry groups retreated. It was particularly bad for tech, the index’s biggest sector, which plunged 8.9 per cent in the worst month since 2008. That translated into a $515 billion drop in market capitalisation. Energy stocks, whose market cap is a fraction of tech’s, fell 11.7 per cent, which amounted to a $152 market cap decline.
Between a trade war that now spread out to Mexico, a breakdown in US-China negotiations and a rising concern about growth, that’s of little surprise. The only sector that survived the sell-off unscathed was real estate, which gained 0.9 per cent for the month.
Stocks in the Philadelphia Stock Exchange Semiconductor Index lost 16.7 per cent for the month, shedding about $228 billion in market cap.