The massive shake-up of the US stock market may not be over! Since the impact of tariffs, the wildest trading day has arrived, putting the confidence to "buy on dips" to a serious test.

NVIDIA Corporation (NVDA.US) had previously provided optimistic guidance, which should have attracted some investors to buy on the dip. However, the sharp decline in tech stocks and the discouraging job data have left investors devastated, facing the dilemma of whether to cut their losses or re-enter the market. The trading strategists at Goldman Sachs Group, Inc. pointed out that an increase in short trading volume in various macro products, including exchange-traded funds and futures, was one of the reasons for the stock market crash on Thursday. The trading department also noted poor liquidity, with the S&P 500 futures ToB depth indicator (the higher the indicator, the more market depth and less susceptibility to large trades causing market volatility, with a tendency towards an increase) dropping below $5 million, compared to the average level of $11.5 million over the year, which could exacerbate market volatility. Furthermore, Goldman Sachs Group, Inc. predicted that Friday this week would mark the largest November options expiration date in history, with an estimated $3.1 trillion nominal value of options expiring, including $1.7 trillion in SPX index options and $725 billion in individual stock options. Large options expirations often bring market turbulence. Earlier this week, the trading department at Goldman Sachs Group, Inc. stated that the current market environment has created favorable conditions for stock gains after assets with the highest risks experienced a four-week decline. In a report to clients on Thursday morning, the trading department at the firm pointed out "signs of recovery" in areas such as quantum computing, cryptocurrencies, and rare metals. This reversal caught investors off guard, as they had been buying options on tech giants in anticipation of continued stock price gains all week. Now, with NVIDIA Corporation's stock falling 3.2% on Thursday and few other bullish factors expected until the end of the year, these positions are likely to generate losses. Robby Knopp, co-director of the S&P 500 options trading department at market maker Optiver, said, "In the wake of NVIDIA Corporation's earnings release, we saw a strong buying wave, indicating that investors were preparing for a stock rebound rather than hedging against downside risk." As the U.S. stock market experienced a sharp drop, the Wall Street fear index - the VIX index - surged 19% during Thursday's trading session. Traders impacted by increased volatility could only hope for a revival of sustained buying on the dip. Chris Murphy, co-director of derivatives strategy at Susquehanna International, wrote in a report to clients following NVIDIA Corporation's earnings release, "Investors are beginning to question what factors can drive a year-end rally in the market." According to Stuart Kaiser, head of equity strategy at Citigroup, the Black Friday retail sales data and the upcoming Fed meeting are currently the only factors likely to stimulate investor sentiment. Kaiser stated on Wednesday, "Retail trading has decreased significantly over the past two to three weeks." He pointed out that the proportion of retail trading compared to overall U.S. stock trading volume has dropped by nearly one-third, from 16% to 11%. Meanwhile, the U.S. non-farm payroll data released on Thursday exceeded expectations, which is a double-edged sword. While it showed signs of economic recovery to traders, it also lowered the likelihood of a Fed rate cut in December. If the Fed maintains its rate next month, it could lead to further declines in the U.S. stock market, breaking expectations of systematic investors increasing their stock investments. However, the phenomenon of buying on the dip in the retail market should not be underestimated, as it has helped the U.S. stock market rebound strongly after hitting a low point in April. Steve Sosnick, Chief Strategist at Interactive Brokers Group, said, "This strategy has been very effective for many people in the long term."