In a recent analysis conducted by Marcus Lu of Visual Capitalist, the biggest single-day stock swings in U.S. history have been ranked based on the total change in market capitalization. The data used for this study was sourced from the blog of Charlie Bilello, Chief Market Strategist at Creative Planning, ensuring accuracy and reliability.
The findings reveal that several of these significant single-day gains are closely tied to developments in the field of artificial intelligence (AI). Notably, on July 31, 2024, Nvidia experienced a remarkable 12% surge, resulting in a staggering $327 billion increase in market capitalization. This surge was attributed to the better-than-expected performance reported by AMD, another U.S. semiconductor company with a focus on AI.
Another noteworthy event occurred on June 11, 2024, when Apple shares witnessed their most substantial daily gain since 2022. This surge was triggered by Apple’s announcement of its on-device AI system, Apple Intelligence, which garnered significant investor interest.
On the other hand, the analysis also highlights the biggest single-day market cap losses in U.S. history, all of which occurred in recent years. The volatility of the tech sector, particularly for Nvidia, has been evident in 2024, as investors have shifted their focus towards more defensive sectors like Utilities and Consumer Staples. Notably, the S&P 500’s utilities sector has seen a remarkable year-to-date climb of over 21% in 2024.
Examining the Nasdaq-100 index, a concerning pattern of “falling tops” has emerged since July 2024. This pattern indicates that each successive peak in price is lower than the previous one, typically signaling a bearish trend.
With today’s multi-trillion dollar valuations, the stock market has witnessed billions in market capitalization being gained or wiped out within a single day. The year 2024 has proven to be particularly volatile for tech stocks, with Nvidia experiencing notable fluctuations.