Stocks are under renewed pressure as risk appetite continues to unwind across multiple corners of the market.
Futures are down this morning after selling off on Thursday, with investors stepping away from crowded trades in technology, crypto, and momentum stocks. The Dow Jones Industrial Average fell nearly 600 points, while the S&P 500 dropped more than 1% and slipped into negative territory for the year. The Nasdaq Composite declined close to 1.6%, with selling intensifying late in the session.
Earnings have added to the uncertainty. Alphabet’s results highlighted just how large and disruptive capital spending plans have become, with projected AI investment levels that gave investors pause. Qualcomm followed with weaker forward guidance tied to supply constraints, adding pressure to the semiconductor space. Meanwhile, bitcoin fell below $64,000, breaking a key support level, and silver saw another sharp leg lower after an already brutal decline last week.
This is the kind of tape where downside protection starts to matter again.
Today’s trade alert focuses on a simple, widely used tool that active investors turn to when markets slide quickly. Rather than short-selling individual stocks, many professionals use inverse ETFs to hedge broad market exposure or to profit from short-term declines.
The ProShares Short S&P 500 (SH) is designed to deliver the inverse daily performance of the S&P 500. When the index falls, SH rises. With nearly $972 million in assets, it is the largest inverse fund tracking the broad U.S. market and one of the most liquid options available for this purpose.
SH is not a long-term holding. It resets exposure regularly and can experience return erosion during volatile or sideways markets. That said, when used over short periods and with discipline, it can be an effective way to manage risk during sharp market drawdowns.
With selling pressure building, volatility picking up, and investors reassessing risk across equities, SH is a practical tool to have on hand right now.
