JPMorgan analysts pointed out a noticeable change in retail investors’ behavior during the recent market downturn, which began in mid-February and continued through the following week. They observed a significant pivot away from speculative, high-risk stocks associated with the Trump era, such as Palantir, and a move toward more traditional, diversified index ETFs. This suggests that, unlike in previous downturns, retail investors are now opting for safer, more stable investment options.

The brief uptick in both crypto and stock markets earlier this week, spurred by President Trump's announcement of a plan to use taxpayer money for a "strategic reserve" of cryptocurrencies, quickly faded. The rally was short-lived, largely due to a combination of factors, including Trump’s tariff threats and a steep decline in Nvidia’s stock. This resulted in both the S&P 500 and Nasdaq ending up in negative territory, fueling doubts about the sustainability of the recent market trends.

Interestingly, this market retreat is different from previous ones, where retail traders eagerly bought the dip. For instance, when Palantir was hit hard by the market in January, retail investors jumped at the opportunity to buy more, signaling confidence in a market recovery. However, this time around, with rising uncertainty—driven by factors like policy changes, tariffs, and doubts over the AI sector’s longevity—those same "animal spirits" seem to have dissipated.

While this may sound ominous, it doesn't necessarily signal the end of the bull market. The high valuations seen across many stocks, particularly those trading at more than 22x forward earnings, might simply indicate that a market correction was needed before stocks can stabilize and potentially rally again. The key question moving forward will be whether retail traders regain their confidence and jump back into the market, or whether this cautious sentiment will persist.

Stocks plunge as the trade war that investors never thought would materialize has finally arrived.

The stock market took a sharp hit on Monday, as investors were forced to confront the trade war that many had doubted would ever truly unfold. After a relentless slide in momentum stocks, the introduction of significant tariffs by President Trump became a reality, and the market reacted accordingly. The S&P 500 recorded its largest loss of the year, driven by the announcement that tariffs on imports from Mexico and Canada would be set at 25%, while tariffs on Chinese imports would be increased to 20%. This shift from a negotiating tactic to actual policy sent shockwaves through the market.

Stocks that had been singled out by Goldman Sachs as particularly vulnerable to these tariffs saw a sharp decline, falling 3%. This drop wiped out all the gains these stocks had made since the US election. The sharp decline marks the worst one-day loss for this group of stocks since the Federal Reserve issued a warning in December about the potential risks to inflation following Trump’s election victory. One of the hardest-hit companies was General Motors, which saw a nearly 3% drop in its stock after the tariff announcement, further deepening its losses.

Up until now, there had been little agreement among investors about whether these tariffs would come to pass. A survey from 22V Research last week revealed that markets had largely shrugged off the threat of trade barriers, with tariff-sensitive stocks actually outperforming those of companies believed to be insulated from these measures. But with the sudden confirmation of these tariffs, it seems that investors' previous assumptions about the likelihood of such measures being enacted are being rapidly reassessed.

The shift in Trump’s trade strategy also marks a clear departure from his previous approach. Under his first administration, he used a combination of incentives and deregulation to stimulate growth. In contrast, Trump 2.0 appears to be taking a more aggressive stance, starting with policies that could directly impact growth and confidence, rather than starting with measures designed to build a stronger foundation. This change in approach has left many investors rethinking their strategies, as the full impact of these tariffs begins to take shape in the market.

The S&P 500 took a major hit on Monday, dropping 1.8%, marking its worst loss of 2025 so far.

This sharp decline was triggered by a one-two punch: a continued slide in momentum stocks and a stark reminder of the real-world impact of President Donald Trump’s trade policy. The Nasdaq 100 fared even worse, losing 2.2%, while the Russell 2000 slumped by 2.8%. It was a brutal day for markets, with the tech-heavy indices feeling the pressure most acutely.

Energy stocks were the hardest hit, driven by a surprise move from OPEC+ to begin ramping up oil production again next month. This decision sent oil prices lower, and the energy sector suffered as a result. Technology stocks also struggled, with heavy losses across the board. However, some sectors acted as a buffer against the broader market carnage, with defensive industries such as real estate, consumer staples, and healthcare offering some relief, though utilities were less immune to the sell-off.

Nvidia saw a significant drop, plunging nearly 9% after Goldman Sachs' market desk issued a series of bearish comments about the stock. The company closed at its lowest level of 2025, reflecting growing concerns about its future performance. Intel, on the other hand, saw an initial surge after rumors surfaced that Nvidia and Broadcom might seek to become customers for its advanced chips. However, the enthusiasm quickly evaporated, and the stock reversed course, ultimately finishing lower.

In other news, Sunnova Energy, a clean energy company, lost nearly two-thirds of its value after issuing a "going concern" notice, signaling significant financial troubles ahead. Meanwhile, the cryptocurrency market saw a brief boost over the weekend following news of a potential Crypto Strategic Reserve, but those gains quickly disappeared as the broader risk asset sell-off took hold. Finally, in a surprising move, Kroger announced the resignation of its CEO for personal conduct violations, sending its stock down, even as it remained relatively stable compared to other market segments.

Energy stocks are facing a significant slump today, making them the worst-performing sector in the S&P 500. While the broader market feels the weight of giant tech stocks, it's energy that's really taking a hit, with the sector down nearly 4%. The cause behind this drop is relatively straightforward.

The downturn comes on the heels of an announcement from OPEC+—the oil cartel consisting of OPEC nations and Russia—that it plans to ramp up oil production. This move follows pressure from President Trump on Saudi Arabia, urging them to lower oil prices. The increase in supply and the subsequent dip in prices had an immediate impact, with crude oil falling by around 2%. As a result, major U.S. oil companies like Exxon and Chevron saw their shares fall more than 3%, reflecting the broader market's negative response to the news.

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