Dragon enters bear cave with $2.4 trillion lost since May peak

Declines across technology names have erased $2.4 trillion from the market’s May peak, marking a sharp reversal from the rally that began in late 2024.

Rally gives way to global decline

The earlier advance was sparked by stimulus and later gained momentum as investors placed fresh bets on artificial intelligence. That rally has now given way to a global selloff in technology names.

The scale of the losses places the latest decline in direct contrast with the optimism that powered the market higher after the late-2024 stimulus measures. The shift also highlights how quickly the momentum surrounding AI-related bets has been followed by broad weakness in technology stocks.

A sharp reversal for technology markets

The $2.4 trillion reduction since the May peak captures the extent of the downturn described in the source. It also marks the latest stage of a reversal from the stimulus-driven gains that had gathered pace through AI enthusiasm.

With technology names facing a global selloff, the market’s recent trajectory has moved from late-2024 expansion to a significant decline from its May high.

Conclusion

The losses represent a dramatic change in market direction. A rally supported first by stimulus and then by AI bets has been overtaken by a global technology selloff, with $2.4 trillion lost since the May peak.