S&P recorded the biggest single-day loss in 500 years since December 18, senior analysts’ stock market correction war: “We can see it triggers a bigger sell” – NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL)

Goldman Sachs Expert Scott Rubner Warnings are that Wall Street stocks may face a downturn, citing instability in options markets as a key factor in his predictions.

what happened: Stock markets could face pressure on the expiration of nearly $27 trillion in the stock market derivatives approach, Reuters reported on Friday. If these contracts remain unattended, volatility may be increased.

Rubner also highlighted other factors that could slow down stock purchases, including upcoming annual taxes by U.S. retailers and a seasonal decline in retirement fund contributions to mutual and exchange-traded funds in March.

See also: Vivek Ramaswamy Foresees Bitcoin as the “more universal” corporate finance ministry, as the end of Easy Money’s era

About $2.7 trillion in equity options will expire on Friday, covering bets on the S&P 500, U.S. exchange-traded funds and individual stocks. According to Goldman Sachs, banks and intermediaries hold more than $9 billion in hedging, which industries help stabilize market volatility.

Dan Izzo, The founder of hedge fund Blkbrd Asset Management and former bank trader explained that if investors fail to renew their choice bets, intermediaries will be forced to relax their hedging. This creates huge short-term pressure. The greater risk is that if “no one wants to buy this effect, we can see that it triggers a bigger short sale,” Izzo warned.

Why it matters: Although the S&P 500 and European stocks hit record highs on Tuesday, they have retreated since then. The decline is driven partly by the president Donald TrumpTariff warnings on drugs, semiconductor chips and wood have intensified the focus on trade wars and shocking investors.

Tariffs imposed by the Trump administration have raised concerns among many giants Apple AAPLand Nvidia Corp. NVDA,other.

In a poll conducted by Benzinga, 35% of respondents believed that Apple would be most affected by Trump’s tariffs due to its dependence on China’s supply chain. Most respondents also believed that these plans could cause revenge in other countries. Analysts at Bank of America Securities suggested that Apple may need to raise the price of iPhone by 9% to deal with tariffs.

at the same time, SPDR S&P 500 ETF spy The Dow Jones industrial averages both fell 1.7% on Friday, recording the steepest one-day loss since December 18. at the same time Invesco QQQ Trust QQQ According to Benzinga Pro, a 2.07% reduction.

Disclaimer: The content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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