Nvidia lost $180 billion in a single day, Powell's 'stagflation theory' hammered U.S. stocks, how should retail investors save themselves?

On Wednesday, the U.S. stock market suffered a heavy blow, with all three major indices closing lower, and the tech sector leading the decline. Investors grew concerned about the prospects of global tech giants, while Fed Chair Powell's comments on the impact of tariffs heightened market tensions. At the close, the Dow Jones Industrial Average fell 699.57 points, or 1.73%, to 39,669.39; the $SentinelOne(S.US)&P 500 Index (.SPX.US) dropped 2.24% to 5,275.70; and the tech-heavy $Nasdaq Composite (.IXIC.US) slid 3.07% to 16,307.16, now down about 19% from its previous high and nearing the threshold of a technical bear market.

What did Powell say yesterday? Powell continued to ignore President Trump's calls for rate cuts. He reiterated that Trump's policies, such as tariffs, have created high uncertainty for the economy, and the Fed will wait for clearer conditions before considering rate cuts to avoid tariffs persistently driving up inflation. Powell stated that the Fed would balance its dual mandates of inflation and employment while acknowledging that if tariffs push inflation higher and slow economic growth, achieving these mandates would be challenging. This was seen as raising concerns about stagflation. Powell predicted that, given unprecedented uncertainty, financial markets like U.S. stocks would continue to fluctuate but denied that the Fed would "rescue the market" as investors bet on a Fed Put option, since markets are functioning normally and orderly. Powell said he expects markets to remain "persistently volatile" due to the "historically unique situation filled with enormous uncertainty."

In this environment of panic and uncertainty, how can retail investors protect themselves?

Investment Strategies
Gold ETFs: Supported by geopolitical risks and a weaker dollar, but be wary of profit-taking (RSI overbought).

U.S. Treasury Futures: If the 10-year yield falls below 3.7%, consider building positions in batches.

Key Future Observations

• April 20 Fed Beige Book (focus on actual corporate impact of tariffs)

• Progress in U.S.-China tariff negotiations (June negotiation window approaching)

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