From technology stocks to gold and then to cryptocurrencies, the various hottest trades on Wall Street that were previously being chased by funds every day have now completely shifted to a sudden retreat to safety.
This time, there is no single triggering factor, unlike last April when the market plunged into panic due to President Trump's 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 that these valuations have risen too high, ultimately leading investors to almost simultaneously choose to retreat.
Thursday's market performance once again confirmed this:
<blockquote>
The S&amp;P 500 fell 1.2%, closing down for the third consecutive trading day; the NASDAQ 100 index widened its losses, marking the deepest correction since last April.
Software stocks continued their downward trend, with AI company Anthropic launching a new model aimed at executing financial research, highlighting the competitive threat posed by new technologies.
Silver prices, which previously reached historical highs alongside gold, plummeted by 17%.
Bitcoin fell 10% in a single day, erasing all gains since Trump won the election 15 months ago, as investors began to close out losing trades financed through borrowing.
U.S. Treasuries rebounded, once again playing the traditional role of a &#34;last safe haven.&#34;
Despite its revenue exceeding expectations, Alphabet, Google's parent company, saw its stock price pressured downward after announcing ambitious spending plans.
After the market closed on Thursday, Amazon's stock price plummeted by 10%, as the company announced plans to invest $200 billion this year, far exceeding analysts' expectations, and these analysts have increasingly worried about excessive spending by tech companies on artificial intelligence.
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Recent market movements stand in stark contrast to the sentiment on Wall Street at the beginning of the year. At that time, strategists expected the U.S. stock market to experience its longest consecutive rise in nearly two decades. These predictions were based on several assumptions: the AI boom would continue, a resilient economy would continue to support corporate profits, and the Federal Reserve would lower interest rates.
This overall outlook largely still exists, as evidenced by the robust earnings reports released in recent weeks. However, at the same time, the market has also refocused on some accumulating risks:
<ul>
<li>Which companies will be eliminated in the AI wave;</li>
<li>If Kevin Warsh, nominated by Trump, is confirmed to succeed Powell as Federal Reserve Chairman, what direction will monetary policy take;</li>
<li>And whether the asset valuations of gold, Bitcoin, and even tech giants like Alphabet have become too high and are difficult to sustain in the long term.</li>
</ul>
The stagnation of momentum is particularly evident in Bitcoin:
<blockquote>
For most of last year, the speculative frenzy triggered by Trump's victory drove cryptocurrency prices to soar, but since the beginning of this month, with a massive withdrawal of investments, this market has experienced a collapse.
On Thursday, as the trading day progressed, the sell-off of Bitcoin further intensified, dragging down other cryptocurrencies, related ETFs, and &#34;crypto vault&#34; companies like Strategy that hold large amounts of Bitcoin
Late Thursday afternoon New York time, Bitcoin plummeted by 13%, falling below $63,000, nearly retreating half of the historical high set four months ago.
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In the stock market, the declines were relatively mild, but the selling pressure was widespread, with 9 out of the 11 major sectors in the S&amp;P 500 experiencing declines. In addition to concerns about which companies will be the losers in the AI technology wave, investors are also questioning whether the massive investments in this technology will ultimately yield returns. The drop in the stock price of Google's parent company Alphabet reflects this sentiment.
Regarding the above trends, industry insiders pointed out:
<blockquote>
People are clearly shifting towards more defensive strategies. This feels more like a market environment where you shoot first and ask questions later. The fear and uncertainty in the entire market are evident.
The recent pullback reflects market concerns: the hottest stocks and assets like gold had previously risen too quickly and were due for a &#34;clearing.&#34; This is a reset. The momentum may have been overexhausted.
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Risk Warning and Disclaimer
The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at their own risk

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The popular trades on Wall Street have completely retreated, with assets such as technology stocks, gold, and cryptocurrencies facing risk-averse sentiment. The market has declined due to anxiety over asset valuations, with the S&P 500 falling for three consecutive days and the NASDAQ 100 index experiencing a deep correction. Silver plummeted by 17%, and Bitcoin dropped by 10%. Despite Alphabet's revenue exceeding expectations, its stock price still declined due to spending plans. Amazon's stock price plummeted by 10% as its investment plans exceeded analysts' expectations. Market sentiment stands in stark contrast to the beginning of the year, with risks resurfacing

- Wall Street has seen a shift from high-risk assets like technology stocks and cryptocurrencies to a sudden retreat from risk.  
- Concerns about asset valuations have intensified following a series of cumulative warnings, leading to widespread sell-offs, including a 10% drop in Bitcoin and a significant decline in silver prices.  
- Investors are now adopting more defensive strategies, reflecting fear and uncertainty in the market as they question the sustainability of recent valuations and the impact of high expenditures on artificial intelligence.

The hottest trades on Wall Street are all retreating