The NASDAQ dropped 6.4% last Thursday, erasing $2.3 trillion in value, its worst day on record. The S&P 500 fell 4.4%. Alphabet shares fell more than 13% on October 29, and Intel dropped 29% the next day.
All 11 sectors of the S&P 500 declined, with technology hit hardest. The NASDAQ entered correction territory, falling more than 10% below its October record.
The market reversed course on Monday. The S&P 500 posted its best day since April. All 11 sectors climbed in the most widespread rally in almost a year.
Citibank downgraded U.S. equities because of AI exposure, while others remain bullish on U.S. stocks for AI opportunity reasons.
The article notes that market emotions shift rapidly. After Thursday's fear came Monday's buying opportunity. By Tuesday afternoon, markets were slightly down on October inflation data.
The author advises against absorbing market mood swings. Investors who stay committed to their plans and practice dollar-cost averaging, even boosting contributions by 1%, tend to weather volatility better than those who react to daily swings.