U.S. equity markets suffered a sharp sell-off, with roughly $1.3 trillion in market value erased in a single session, as losses accelerated across major indices and large-cap stocks.
The downturn pushed both the Nasdaq and the S&P 500 into negative territory for the year, effectively wiping out all gains accumulated since the start of 2026.
Key takeaways
About $1.3 trillion in U.S. market capitalization was wiped out in a single day
Nasdaq and S&P 500 turned negative for 2026 after the sell-off
Selling pressure intensified into the close, signaling weak dip-buying demand
The scale of the decline was highlighted by market commentary from Bull Theory, which pointed to synchronized weakness across technology stocks, broad market benchmarks, and industrial names. Intraday charts showed heavy selling pressure late in the session, suggesting investors were unwilling to step in as uncertainty mounted.
?BREAKING: $1.3 trillion has been wiped out from the U.S. stock market today till now.
Nasdaq and S&P 500 have ERASED all their 2026 gains and turned negative.
This comes as U.S.-EU trade tensions rise, Japan’s bond market continues to weaken, and pension funds begin cutting… pic.twitter.com/4vE2tCqs33
— Bull Theory (@BullTheoryio) January 20, 2026
Global pressures converge on U.S. markets
The sell-off unfolded against a deteriorating global backdrop. Trade tensions between the United States and the European Union have resurfaced, while Japan’s bond market continues to show signs of strain, raising concerns about global interest-rate volatility. At the same time, reports that pension funds are trimming exposure to U.S. Treasuries have added to fears of shifting capital flows.
Technology stocks bore the brunt of the move. Shares of NVIDIA extended recent losses, amplifying pressure on growth-heavy indices. The Nasdaq slid sharply as tech valuations came under scrutiny, while the S&P 500 declined more broadly as selling spread across sectors.
With multiple macro risks converging, investor confidence appears fragile. Whether the sharp decline proves to be a temporary correction or the start of a deeper repricing will likely depend on how trade relations, bond markets, and global liquidity conditions evolve in the weeks ahead.
