All the hottest trades on Wall Street are pulling back across the board

From technology stocks to gold and then to cryptocurrencies, the most popular trades on Wall Street that were previously flooded with capital every day are now experiencing a sudden retreat to safe havens.

This time, there is no single trigger factor, unlike last April when the market plunged into panic due to U.S. President Trump initiating a trade war. Instead, a series of slowly accumulating news has continuously sounded alarm bells, triggering market anxiety over asset valuations, and many have long suspected these valuations were too high, ultimately leading investors to withdraw almost simultaneously.

Thursday’s market movements once again confirmed this:

The S&P 500 fell 1.2%, marking its third consecutive day of decline; the Nasdaq 100 index widened its losses, hitting its deepest correction since April last year.

Software stocks continued their decline, with AI company Anthropic launching a new model aimed at financial research, highlighting the competitive threat brought by new technology.

Silver prices, which had previously hit a historic high along with gold, plummeted 17%.

Bitcoin plunged 10% in a single day, erasing all gains since Trump won the election 15 months ago, as investors began to unwind leveraged, loss-making trades.

U.S. Treasuries rebounded, once again playing the traditional role of the “last safe haven.”

Despite exceeding expectations with its revenue, Google’s parent company Alphabet’s stock remained under pressure after announcing an ambitious spending plan.

After the market closed on Thursday, Amazon’s stock plummeted 10%, as the company announced plans to invest $200 billion this year—far above analyst expectations—who are increasingly worried about excessive AI-related spending by tech giants.

Recent market trends stand in stark contrast to the sentiment at the beginning of the year on Wall Street. At that time, strategists predicted the U.S. stock market could see its longest consecutive rally in nearly two decades. These forecasts were based on several assumptions: that the AI boom would continue, that a resilient economy would keep supporting corporate profits, and that the Federal Reserve would cut interest rates.

This overall outlook largely remains intact, as evidenced by the solid earnings reports released over the past few weeks. However, at the same time, the market is refocusing on some accumulating risks:

• Which companies will be eliminated in the AI wave;
• If Kevin Warsh, nominated by Trump, is confirmed as Fed Chair Powell’s successor, what direction will monetary policy take;
• And whether assets like gold, Bitcoin, and even tech giants like Alphabet are already overvalued and unsustainable in the long term.

The momentum appears particularly stagnant in Bitcoin:

Most of last year, the speculative frenzy triggered by Trump’s victory drove cryptocurrency prices sharply higher, but since this month, with massive investor withdrawals, the market has collapsed in a crash-like manner.

On Thursday, as trading progressed, Bitcoin’s sell-off intensified further, dragging down other cryptocurrencies, related ETFs, and “crypto vault” companies holding large amounts of Bitcoin.

Later Thursday afternoon in New York, Bitcoin briefly plunged 13%, falling below $63,000, nearly halving from its all-time high set four months ago.

In the stock market, declines are relatively moderate, but selling pressure is widespread, with 9 out of 11 major sectors in the S&P 500 declining. Besides concerns over which companies will lose out in the AI wave, investors are also questioning whether the huge investments in this technology will ultimately pay off. The decline in Alphabet’s stock price reflects this sentiment.

Industry insiders point out:

People are clearly shifting toward more defensive strategies. This feels more like a market environment where you shoot first and ask questions later. The fear and uncertainty across the entire market are evident.

The recent pullback reflects concerns that the hottest stocks and assets like gold have risen too quickly and should undergo a “clearing” process. This is a reset. Momentum may have been overextended.

Risk Warning and Disclaimer

Market risks are inherent; invest cautiously. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions herein are suitable for their particular circumstances. Invest at your own risk.