Nearly $1 trillion has vanished from the US stock market in the first 12 days of 2016.
Stocks have been walloped as China’s economy continues to sink, oil prices crash, and the US dollar strengthens.
Last week the Dow and S&P 500 suffered their worst start to a trading year in history.
The S&P 500’s market valuation has lost $1.04 trillion since the end of 2015, according to S&P Dow Jones Indices.
The Dow’s market cap fell by $310 billion through Monday’s close, according to S&P Dow Jones Indices.
Nasdaq, which had a stellar 2015, has also lost 7% of its value in early 2016. On Monday Nasdaq was hit with its eighth losing day in a row, it’s longest losing streak since 2008.
CNNMoney’s Fear & Greed Index has been placed at “extreme fear,” from a “neutral” status just two weeks ago.
The Dow did manage a tiny gain on Monday and then jumped more than 100 points shortly after the opening bell on Tuesday. That gain was quickly chipped away at, but it could be good news for investors.
“The risk of a full-blown bear market remains low without a recession, which our economists see as unlikely,” Bank of America Merrill Lynch U.S. equity strategist Savita Subramanian said in a client report.
Oil prices are largely to blame for the dramatic declines. Eight of the nine worst performers in the S&P 500 have exposure to the energy market.
Even without energy companies losing money, less than 10% of the S&P 500 has gained ground this year. One of those big gains is Wal-Mart, which experts believe is only gaining over concerns of an economic downturn which tends to benefit the discount retailer.