Wall Street is waking up to the downside of its own overconfidence — in AI, Trump, and momentum. Investors had spent months bidding up the biggest names in tech, but now the air is rushing out. Notably, the stocks that surged in the first months following Donald Trump’s re-election in November are now the ones getting hit the hardest.

Fears of an economic downturn are driving a stock market sell-off that has wiped out $4 trillion from the S&P 500’s peak last month, when Wall Street was cheering much of Trump's agenda.