US equities have slumped in the past few weeks, with the S&P 500 index plunging by about 7.65% from its highest point this year. The popular Nasdaq 100 index, which tracks the biggest technology companies, has moved into a correction by falling by over 10% from the year-to-date high. This article explains why the popular S&P 500 ETFs like IVV, SPY, and VOO have crashed.

AI jitters are the main reason for the S&P 500 index crash

The general view among market participants is that Donald Trump’s tariffs have contributed to the ongoing S&P 500 index crash. While this is true, a closer look at the top performers and laggards in the index shows that the most logical companies to be affected by tariffs have not been the biggest casualties. 

For example, Ford’s stock has jumped by 1% this year, while General Motors has dropped by 6%. Other companies that deal with imports like Kroger and Dollar General have done well this year. 

Most notably, the popular Invesco S&P 500 Equal Weight ETF (RSP) has dropped by 0.80% this year, while the S&P 500 index has dropped by 3.6%. The SCHD ETF has risen by 1.6% this year.

Therefore, there are signs that the ongoing SPY, IVV, and VOO ETFs crash has more to do with technology stocks than the broader market. Indeed, all companies in the Magnificent seven have all plunged, with Tesla and Nvidia being the biggest casualties. 

The most likely reason for the ongoing US stock market crash is that there are concerns that the AI industry is slowing. This view diverges with the broader market that has continued funding AI companies. Just this week, we reported that PerplexityAI was raising cash at a $18 billion valuation.

Most publicly traded AI stocks like C3.ai, NVIDIA, AMD, SoundHound, and BigBear AI have all plunged by double digits from their highest points this year. C3.ai stock has crashed by 50% from its highest level in December. Similarly, AMD stock has dropped by 53% from its highest point in 2024. NVIDIA has also crashed by over 15% from its highest level this year. 

There are signs that the AI industry is cooling, with most companies reporting strong but decelerating earnings. NVIDIA’s fourth-quarter revenues soared by over 70%, and guided to 66% YoY growth in the first quarter. Analysts expect that NVIDIA’s revenue will grow by 56% this year and 23.3% next year. 

SPY ETF stock price analysis

The second reason why the S&P 500 index has crashed is what we wrote about in this January article. In that article, we warned that the index would plunge because it formed a rising wedge and a double-top pattern at $610. These are some of the most bearish patterns in the market.

The index has now plunged below the 50-day and 100-day moving averages, a sign that bears are in control for now. Therefore, there is a risk that the index and its accompanying ETFs, like the SPY, VOO, and IVV ETFs, will continue falling in the coming days. The initial target for the SPY ETF stock is the year-to-date low of $547 and the psychological point at $504. 

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The JPMorgan Nasdaq Equity Premium Income (JEPQ) ETF is doing relatively well this year in terms of inflows and total returns. It has brought in over $3.5 billion in total inflows as investors continued looking for its yield. Its inflows in January stood at $1.6 billion, followed by $1.3 billion and $634 million in the next two months.

The JEPQ ETF has also had a better performance compared to the Nasdaq 100 index. Its total return has been negative 4.78% compared to Invesco QQQ (QQQ) minus 6%. So, is JEPQ a good investment as volatility in the market rises?

What is the JEPQ ETF?

The JEPQ ETF is one of the biggest covered call ETFs in Wall Street with over $23 billion in assets. 

Like JEPI, its sister fund, it helps investors gain access to the Nasdaq 100 index and superior returns. 

As such, while the QQQ ETF yields less than 1%, JEPQ ETF investors receive about 10.7% in annual distributions, which come monthly. A 10% return is a big one considering that the risk-free rate of 10% stands at less than 4.5% today. 

The JEPQ ETF generates its returns in two ways. It receives dividends from the portfolio companies it has invested in. At the same time, the fund makes money from using the covered call strategy. 

Covered call is an approach where an investor buys an asset and then sells call options of the same asset. In this case, the JEPQ ETF sells call options of the Nasdaq 100 index, which is popular name that tracks the biggest technology companies in the US. After writing the call strategy, the fund receives a premium payment, which it distributes to investors.

Read more: JEPQ vs JEPI: Are these boomer candy ETFs good buys in 2025?

Why invest in JEPQ?

There are a few reasons why investing in JEPQ makes sense to most investors. First, the fund has constantly provided monthly dividend payouts to investors. Historically, these returns have been better than those offered by fixed assets like bonds and money market funds. As such, the fund is seen as a better alternative to these funds.

Second, the index tracks the most futuristic companies in the US. This includes companies like NVIDIA, Microsoft, and Apple that have a record of doing well. These companies have invested in most industries that will dominate future technologies. 

Further, the JEPQ ETF is widely seen as a better companion for the QQQ and other tech-heavy ETFs that offer a low yield. As such, if you are invested in the QQQ, you can supplement the return by allocating your capital to the JEPQ fund for higher returns. 

Third, the ETF has a correlation with the QQQ ETF, especially when you look at the total return. As shown below, the JEPQ ETF’s total return in the last three years was 41%, while the QQQ returned 39%.

The same trend has happened this year as the JEPQ’s total return was minus 4.8% compared to QQQ’s 5.9%. This means that the fund will likely continue doing well over time, especially when this correction ends.

Read more: JEPQ ETF stock sits at an all-time high: 3 catalysts to watch

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Trump tariffs and the related fears of a recession ahead pushed the S&P 500 index into correction territory this month, creating quite a few buying opportunities in the process.

But some of the names on the benchmark index have sold off relatively harder and are now trading at significant discounts to their historical valuations.

Here are the top two quality stocks that you can load up on currently at a massive discount to their average price-to-earnings ratio over the past five years.

Amazon.com Inc (NASDAQ: AMZN)

Amazon stock has lost about 20% since early February due to macroeconomic headwinds and concerns that AI spending could slow down as we advance through the remainder of 2025.

The titan’s current price-to-earnings ratio sits about 38% below its average multiple over the past five years.

That’s part of the reason why JPM recently reiterated AMZN as a top pick for this year.  

Analysts at the investment firm expect Amazon to tap on low prices and a huge selection of items to grow its market share if the US economy does indeed slide into a recession in 2025.  

Amazon shares remain worth owning this year also because the giant continues to demonstrate financial strength.

In its latest reported quarter, the Nasdaq-listed firm came up with $1.86 a share of earnings on $187.8 billion in revenue.

Analysts, in comparison, were at $1.49 only and $187.3 billion, respectively.

Amazon has invested rather aggressively to diversify its business over the years. Its high-margin advertising business brought in a staggering $17.3 billion in its fiscal Q4.

Note that JPMorgan isn’t the only one that’s bullish on the AI stock. The consensus rating on Amazon also currently sits at “buy”.

Devon Energy Corp (NYSE: DVN)

Another high-quality stock that’s currently trading at a deep discount to its historical valuation is Oklahoma headquartered Devon Energy.

Versus their 52-week high, shares of the hydrocarbon exploration firm are currently down about 30%, which is why DVN’s price-to-earnings ratio now sits about 33% below its average multiple over the past five years.

Much like AMZN, Devon stock is also worth buying for the strength of its financials. In its fiscal Q4, the NYSE-listed firm earned $1.16 on a per-share basis – well above $1 per share expected.

At $4.4 billion, the company’s revenue also came in handily above Street estimates in the fourth quarter.

At the time, Devon’s board also raised the fixed dividend by 9%, “reflecting confidence in the energy outlook and DVN’s future free cash flows.”

That’s why Wall Street currently has a consensus “overweight” rating on Devon shares as well.

Analysts have an average price target of $49.48 on the energy stock which indicates a potential upside of close to 40% from current levels.

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The blue-chip Dow Jones index has crashed this year as concerns about Donald Trump’s tariffs and the bursting of the AI bubble continued. After peaking at $45,090 earlier this year, the index crashed to a low of $40,650, its lowest level since September 11. It has now stabilized a bit at $42,000, but is still at risk of further downside. 

Top laggards in the Dow Jones Index

The worst-performing Dow Jones stocks are in the popular technology sector. These names include Salesforce, NVIDIA, Apple, Amazon, Disney, and Nike.

Salesforce (CRM)

Salesforce stock has crashed by 16% this year, making it the worst-performing Dow Jones stock. It has dropped by over 23% from its highest level this year as concerns about its performance in the artificial intelligence industry. 

Wall Street analysts are concerned about Salesforce’s growth prospects this year. The average estimate is that its revenues will grow by 6.7% this quarter and by 7.85% this year. Salesforce’s guidance is that its FY26 revenue guidance will be between $40.5 billion and $40.9 billion, while its free cash flow growth will be about 10%.

There is a risk that the CRM stock price will drop further as it has formed a double-top chart pattern at $366. It has moved below the neckline at $315 and formed a death cross as the 50-day and 200-day moving averages crossed each other.

CRM stock chart

Read more: Salesforce stock price forecast: risky pattern emerges ahead of earnings

NVIDIA (NVDA)

NVIDIA stock has crashed by over 15% this year, making it the second-worst performer in the Dow Jones Index this year. The stock’s sell-off eased last week as it had its GTC conference, where it showcased some of its latest innovations. 

NVIDIA stock price has crashed because of the fear that the AI bubble was bursting and that its growth was slowing. Analysts expect that its first-quarter sales growth will be 66% followed by 59% in the second quarter. For the year, its revenue is expected to grow by 56%, followed by 23% next year. 

While NVIDIA’s growth is continuing, most analysts believe that it needs another catalyst now that the AI sector has started to slow.

Amazon (AMZN)

Amazon stock price has crashed by 12% this year, making it another top laggard this year. It has dropped for two main reasons. First, analysts expect that its retail business will underperform the market because of Donald Trump’s tariffs that could impact retail spending.

Second, Amazon stock has dropped because of the slowdown in its cloud computing industry and the fact that it is still spending billions of dollars on data centers this year. The average estimate is that its revenue growth will be 8.13% in Q1 and 9.6% this year. 

Apple (AAPL)

Apple stock price dropped by 12% in 2025, making it a top laggard in the Dow Jones index. Its retreat is mostly because Donald Trump’s tariffs will make it more expensive to do business. Unless it receives a waiver, customers will have to pay more money for their iPhones and computers. 

Apple stock has also crashed because its business has slowed down, making it difficult to justify the stretched valuation. The average estimate is that its quarterly revenue growth will be 3.6%, while its annual growth estimate will be 4.6%. 

Top Dow Jones leaders

Other Dow Jones stocks have done well this year. The best performer is Amgen, a leading company in the pharmaceutical industry whose stock is up by 20% this year. 3M, Chevron, Johnson & Johnson, Coca-Cola, IBM, Verizon, Travelers, Visa, and McDonalds are the other top performers in the index.

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Coinbase stock price has crashed into a bear market this year as the crypto industry remains on edge, with most coins crashing. COIN shares plunged to a low of $176 this month, down by almost 50% from the year-to-date high. Its market cap has dropped from $86 billion to $48 billion, leading to a $38 billion wipeout.

Coinbase news: to acquire Deribit

Coinbase, the biggest crypto exchange in the US, made headlines this month. A key Coinbase news was the decision by the Securities and Exchange Commission (SEC) to end a case that has been going on for a while. Under Gary Gensler, the agency accused Coinbase of offering unregistered securities on its platform. 

The SEC has also ended other similar lawsuits against other top players in the crypto industry like Uniswap, Ripple Labs, Kraken, and OpenSea, the NFT giant. 

Another top Coinbase news came from Bloomberg, which reported that the company was considering making a bid for Deribit, a top crypto derivatives company. This would be a big move as it would transition it into the biggest derivatives player in the crypto industry. Estimates are that the deal will value Deribit at about $5 billion. 

There are signs that crypto companies are considering making large purchases this year. Just this week, Kraken acquired NinjaTrader in a $1.5 billion deal. 

These actions are happening at a time when the crypto industry is going through major challenges. Bitcoin price remains in a correction after falling from an all-time high of $109,300 to $84,000 today. Ethereum price has plunged from $4,080 to $1,800, while most altcoins have imploded. Also, crypto ETFs have lost substantial assets this year.

Coinbase is also battling heightened competition from the likes of Binance, MEXC, Kraken, OKX, HTX, and other top crypto exchanges.

COIN growth to slow this year

The most recent financial results showed that Coinbase’s business did well in the fourth quarter as crypto prices surged. Its quarterly revenue rose from $904 million in Q4’23 to $1.128 billion in Q4’24. 

The most important detail in its report was that it has almost balanced its transaction revenue with that of its subscriptions. Its transaction revenue rose to $572 million, while the subscription and services segment made $641 million.

The subscription revenues come from different areas. Most of it comes from stablecoins, while the rest comes from blockchain rewards, interest and finance fees, custodial fees, and other services. This division has higher margins, and its business is more stable. 

Wall Street analysts expect that Coinbase’s business will slow down in the coming months as crypto prices ease. The average estimate is that its revenue will be $2.23 billion this quarter, up by 35% from the same period last year. It will then make $8.12 billion this year. However, this growth will depend on the performance of the crypto market.

Coinbase stock price analysis

COIN chart by TradingView

The daily chart shows that the COIN share price has crashed in the past few months, falling from a high of $350 to $190. It is about to form a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have formed a bearish crossover pattern. 

The stock has also formed a bearish pennant pattern, a characterized by a long vertical line and a triangle pattern. Therefore, the Coinbase stock price will likely have a strong bearish breakdown in the coming days. The next key support level to watch will be at $150, down by 20% from the current level.

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