Investors who rode the steady upward march in US equities since late March are struggling to find direction as technology megacaps suddenly swing between gains and losses. The S&P 500 just recorded one of its largest swings since the April 2025 tariff rout, catching bulls off guard after months of reliable returns.

22V Research reports its regime dispersion indicator has jumped to the 94th percentile, signaling extreme disagreement among investors about where stocks are headed. Strong labor data last Friday crushed hopes for 2025 rate cuts and pushed markets into a "risk averse regime" for the first time since January.

The Nasdaq 100 Index plunged 4.8% in one session and has moved 1% or more for five consecutive days—the longest stretch since August 2024. Defensive sectors briefly took leadership from technology before chipmakers rebounded on Thursday despite hot inflation data.

Market strategists now predict more frequent rotations between risk-on and risk-off regimes. Wells Fargo called the tech selloff a wake-up call, while JPMorgan Chase shifted to tactically cautious on AI-driven stocks. The market faces its sternest test yet at Wednesday's Fed decision and Kevin Warsh's debut press conference.