S&P 500 drops 1.2%, $750 billion wiped out as big tech stocks slide and Greenland comparison stuns markets

The S&P 500 stock index fell 1.2% by Tuesday morning, after losses reached nearly 1.5% right after markets opened, showing strong selling pressure. Over the last five days, the S&P 500 is down almost 1.7%, which has wiped out about $750 billion in investor wealth.

Economist Justin Wolfers from the University of Michigan said the total market loss is roughly equal to the estimated value of Greenland, putting the size of the drop into perspective, as reported by Forbes. Nvidia, which makes up about 7% of the S&P 500’s total value, led the market decline after its shares fell nearly 3%.

Big tech stocks fall


Other major tech companies also fell sharply, adding to market losses:

• Apple dropped 1.6%
• Microsoft fell 1.3%
• Amazon slid 2%
• Alphabet (Google) declined 1.7%
• Broadcom fell 3%
• Meta dropped 1.8%
• Tesla slid 2.6%

Together, these companies make up 26% of the S&P 500’s total value. The combined drop in these big companies had a large impact because they hold such a huge share of the overall U.S. stock market.

Greenland cost estimate

Greenland’s estimated price could be as high as $700 billion if the U.S. moves forward with buying it, according to people familiar with the estimate, as stated by NBC News.

Secretary of State Marco Rubio has reportedly been asked to draft a proposal to buy Greenland, even though leaders in Denmark and Greenland have rejected the idea. This is not the first time the U.S. has thought about buying Greenland. The idea has come up multiple times in history.

In the 1860s, the U.S. considered buying Greenland during President Andrew Johnson’s administration, but the plan did not move forward. In 1946, the U.S. again made an offer of $100 million for Greenland under Secretary of State James Byrnes, which was also rejected, as stated by NBC News.

FAQs

Q1. Why did the S&P 500 fall this week?

The S&P 500 fell mainly because big tech stocks dropped sharply, pulling the whole market down.

Q2. How much money was lost in the stock market drop?

About $750 billion in market value was wiped out in just five days.