Trump Bump Turns Into A Slump: SPY Sinks As S&P 500 Erases Post-Election Gains

The party is officially over. The S&P 500 has now wiped out all of its post-election gains, shedding a staggering $3.3 trillion since its Feb. 19 peak.

That's a brutal $330 billion in market cap per trading day over the past two weeks—enough to make even the most battle-hardened investors sweat.

For the SPDR S&P 500 ETF Trust SPY, the technicals are flashing all sorts of warning signs.

Chart created using Benzinga Pro

The ETF has tumbled 7% from its all-time high, teetering just 3% away from correction territory. Worse yet, it's now sitting below its eight, 20, and 50-day simple moving averages, with the MACD (moving average convergence/divergence) indicator at a negative 4.99 and an RSI (relative strength index) of 33.59, signaling strong bearish momentum.

Read Also: Tariffs, Trump, Tumult: How To Trade The Volatility Surge

Tariffs Hit, Small Caps Stumble

Much of this sell-off stems from escalating tariff tensions, with the White House pushing through new levies on Mexico, Canada, and China. Unsurprisingly, retaliatory measures were swift, with Canadian Prime Minister Justin Trudeau slamming the move as “totally false.” Mexican President Claudia Sheinbaum is set to hit back over the weekend.

Industrials XLI and energy stocks XLE are taking the brunt of the sell-off, sliding 3.2% and 3.5%, respectively, since Election Day.

Small caps, once darlings of the so-called "Trump trade," have crumbled—the Russell 2000 IWM is now down 8% after soaring 5.84% the day after Donald Trump's Election Day victory.

Can SPY Catch A Bid?

At $576.86, SPY is still above its 200-day moving average of $571.33, offering a glimmer of hope that the longer-term trend could hold. But with sentiment souring and correction territory just around the corner, investors will be watching closely for signs of a bottom.

For now, the "Trump bump" has turned into a Trump dump—and the markets aren't loving the latest plot twist.

Read Next:

• Stock Market Sell-Off: History Shows S&P 500 Rebounds After Big Drops

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