The market pummeled 401(k) accounts last week. Panic selling ensued.

From Yahoo Finance: 2025-04-09 08:17:00

Last week’s market selloff led savers to pull money from US equity and target date funds into more conservative options like stable value and bond funds. Trading activity soared on Monday, reflecting the highest daily volume since March 2020. Investors react to Friday losses over the weekend, impacting Monday’s trading.

Schwab clients bought more equities than sold, but the dollar amount of selling transactions was higher. Popular stocks included Nvidia, Amazon, Apple, and Tesla. Index-tracking ETFs saw increased buying as a volatility-driven alternative. Different reactions among financial planner clients emerged during the market turmoil.

TIAA saw a 30% jump in participant calls and online logins, showing heightened concern among retirement savers. Chief investment officer advised staying diversified across assets and maintaining a long-term perspective. Fidelity offered a positive outlook for US stocks, recommending intermediate-term bonds as a safe haven amid volatility.

Investors facing market downturns struggle with emotional reactions like panic selling. Financial experts emphasize the importance of a long-term investment plan based on individual risk profiles. Staying the course, diversifying, and avoiding emotional decisions are key to weathering market volatility and securing financial futures.

Automatic contributions to retirement accounts and target-date funds provide stability during market fluctuations. Financial experts urge investors to focus on long-term goals and avoid making decisions based on short-term market movements. Having a solid financial plan and maintaining composure during uncertainty are essential for success in retirement planning.

Read more: The market pummeled 401(k) accounts last week. Panic selling ensued.