U.S. stocks evaporated nearly $2 trillion in one day! Will this kind of "flash crash followed by V-shaped reversal" happen frequently again in 2026?

Recently, the U.S. stock market staged a classic "roller coaster" show: on Friday, AI chip stocks collectively plunged, the Nasdaq dropped over 4% (the largest single-day point decline recently), the S&P 500 fell 2.6%, and the total market capitalization instantly evaporated about $1.8 trillion! There was panic selling during the trading session, but by the close, signs of a clear rebound had already appeared.
The most severe single-day crashes in U.S. stock history (review)
Black Monday in 1987: the Dow Jones Industrial Average plummeted 22.6% in one day, still holding the record (programmatic trading + liquidity drought).
The pandemic in 2020: circuit breakers triggered four times within two weeks, with the Dow's largest single-day drop nearly 13%, but V-shaped reversals also occurred multiple times.
Flash crash in 2010: the Dow fell nearly 1,000 points within minutes, evaporating trillions in market value, then quickly recovered most of the losses.
Recent cases: between 2025-2026, tariffs, geopolitical conflicts, and other factors have repeatedly triggered similar flash crashes + rebounds.
The common point of these crashes: short-term panic amplifies, but in the long run, they are often "shakeouts" or buying opportunities. But each time, countless people find it hard to sleep.
Will this kind of "flash crash - V-shaped reversal" happen frequently again in 2026?
Very likely! High valuations of AI, geopolitical risks, policy uncertainties, algorithmic trading... any small catalyst can ignite volatility. When the VIX fear index spikes, the market becomes a roller coaster.
When faced with such crashes, what is your move: cut losses, add positions, or lie flat?