Checking your portfolio shouldn't feel like a horror movie, but lately, the vibes are definitely a bit tense. Everyone is asking the same thing: what percentage is the stock market down right now? If you just glanced at the headlines this morning, you might think we’re in freefall. Honestly, though? The answer depends entirely on which "market" you're looking at and how far back you’re willing to zoom.
As of mid-January 2026, we are seeing a bit of a "new year hangover." After a massive 2025 where the S&P 500 climbed over 17%, things have cooled off. Right now, the major indexes are coming off a week where they slipped about 1%. That sounds tiny, but when you're talking about trillions of dollars in market cap, it’s a lot of "paper wealth" vanishing into the ether.
What Percentage Is The Stock Market Down Right Now?
If we look at the S&P 500, it’s currently sitting around 6,940 points. That’s roughly 0.5% off its all-time high set just a few days ago on Monday, January 12. So, while the "down" percentage is small, the feeling of losing momentum after a record-breaking run is what’s making people sweat.
The Nasdaq Composite is a slightly different story. It’s been hovering around 23,515, which is down about 0.9% for the week. Tech is always a bit more dramatic. When yields on the 10-year Treasury spike—like they did this week, hitting a four-month high of 4.23%—tech investors tend to hit the "sell" button first.
Breaking Down the Major Indices (YTD 2026)
- S&P 500: Currently up about 1.2% year-to-date, but down 0.6% from its recent peak.
- Nasdaq Composite: Up roughly 1.1% for the year, but struggling with a 1% weekly slide.
- Dow Jones Industrial Average: Sitting near 49,359, down about 0.2% from its last close.
It’s a weird spot to be in. Technically, the market is "up" for the year 2026, but it feels "down" because the first two weeks of January have been a choppy mess of volatility and mixed earnings reports.
Why the Market Is Wobbling This Week
You can't just look at the numbers without looking at the why. A huge reason the stock market is down a few percentage points from its highs is the sheer uncertainty coming out of Washington and the Federal Reserve.
Jerome Powell’s term as Fed Chair is wrapping up in May. There’s a lot of chatter about who takes the wheel next. Names like Kevin Hassett are being tossed around, and the market is trying to guess if the new chair will be a "dove" (loves rate cuts) or a "hawk" (keeps rates high to fight inflation). Investors hate guessing. When they have to guess, they sell.
Then you have the "Buffett Indicator." This is a classic metric Warren Buffett popularized that compares the total value of the stock market to the U.S. GDP. Right now, that ratio is sitting at a whopping 222%. For context, Buffett famously said that if the ratio approaches 200%, you’re "playing with fire." We aren't just near the fire; we're basically roasting marshmallows on it.
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The Sector Split: Not Everyone is Losing
Even when the "market" is down, certain pockets are actually thriving. Look at the banks. PNC Financial just hit a four-year high after beating earnings. Micron (MU) surged nearly 8% this week because an insider bought $8 million worth of shares. People see that and think, "Hey, if the boss is buying, maybe I should too."
On the flip side, utility companies like Constellation Energy (CEG) and Vistra (VST) got absolutely hammered—dropping 10% and 8% respectively—after reports surfaced that the administration wants to change how the electricity grid is managed. If you own those, the "market" feels like it's down 20%, not 1%.
History vs. Right Now
To understand what percentage is the stock market down in a real sense, you have to look at drawdowns. A "drawdown" is just finance-speak for how far a stock has fallen from its peak.
Since 2003, most Nasdaq corrections (the "tech market") have been less than 10%. We’ve only had 13 times where it dropped more than 10% in over 20 years. Right now, we are nowhere near a "correction" or a "bear market" (which is a 20% drop). We are in what pros call a "tussle."
Basically, the bulls want to keep the 2025 rally going, and the bears are pointing at the 10-year Treasury yield and saying, "Nope, things are too expensive."
Key Performance Markers to Watch:
- The 10-Year Treasury Yield: If this stays above 4.2%, expect the "percentage down" for the Nasdaq to get bigger.
- Q4 Earnings: Next week is huge. We have United Airlines, 3M, and Intel. If Intel misses, the chip sector—which has been the engine of this market—could stall.
- The "Clarity Act": This is a big crypto regulation bill. It stalled this week, and crypto companies like Coinbase took a hit. If you're a crypto-heavy investor, your "market" is down way more than the S&P 500.
Is This the Start of a Bigger Crash?
Look, nobody has a crystal ball. But most analysts, including those at Wells Fargo and JPMorgan, think this is just healthy profit-taking. After the massive gains of 2025, it’s normal for people to sell some stock to pay their taxes or just lock in some wins.
The S&P 500 is still up about 41% since the lows of April 2025. When you realize that, a 0.6% drop from the all-time high feels a lot less scary. It’s like climbing a mountain and taking two steps back to catch your breath. You're still way higher than where you started.
The real danger isn't a 1% dip. The danger is the "valuation gap." We are paying a lot of money for every $1 of profit these companies make. If earnings don't live up to the hype—especially the AI hype—that's when the "percentage down" could actually start to hurt.
Your Move: What to Do With This Info
Knowing what percentage is the stock market down is only useful if you do something with it. Here is how to handle this specific January 2026 volatility:
- Audit your "Magnificent Seven" exposure: These big tech stocks drove the 2025 rally. If your portfolio is 80% Nvidia and Microsoft, you’re going to feel every tiny dip ten times harder.
- Watch the Yields: Keep an eye on the 10-year Treasury. If it creeps toward 4.5%, it might be time to move some cash into safer "Value" stocks or even high-yield savings accounts.
- Check your "Buy" list: When high-quality stocks like JPMorgan or Alphabet dip 2% or 3% on no real news, those are often the best times to add a few shares.
- Don't Panic on Weekly Losses: The major indexes posted weekly losses of less than 1% this week. That is statistically "noise." Don't let a bad week ruin a good long-term plan.
The market is currently taking a breather. Whether that breather turns into a nap (a correction) or a full-on hibernation (a bear market) depends on the earnings reports we see over the next 14 days. For now, stay diversified and don't let the "red" on your screen distract you from the "green" you've made over the last year.
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Next Step: Review your portfolio's asset allocation to see if you've become "top-heavy" in tech after the 2025 run. If tech makes up more than 30% of your total holdings, consider rebalancing into value sectors or international equities which showed strong resilience this week.