US stock market sentiment changes drastically! From "FOMO" to "fear of a crash", the market crazily buys index decline insurance.

According to the Wisdom Financial APP, the "fear of missing out (FOMO)" sentiment that has been driving the continuous record highs in the US stock market over the past few months is rapidly fading, being replaced by "fear of losing it all". With AI trading experiencing its most severe pullback since 2026 and risks of inflation and interest rate hikes heating up again, Wall Street funds are flowing into defensive positions at an unprecedented pace. The latest options market data shows that investors are heavily buying downside protection tools for the S&P 500 index and Nasdaq 100 index, indicating that the market is preparing for potentially larger adjustments in the coming weeks.