You may have seen the alarming headlines around the S&P 500 index. On Friday (5 June), the US market suffered its worst day since October, plunging 2.64%. The tech-heavy Nasdaq did even worse, tumbling 4%. That tells us one thing immediately. Technology stocks led the sell-off. So what’s going on?
One reason is fear over a potential artificial intelligence bubble. Elon Musk’s SpaceX flotation on 12 June has concentrated minds. Excitement keeps building, but so does anxiety. If the S&P 500 falls, the FTSE 100 will surely follow.
Is Musk simply tapping up starry-eyed retail investors to raise cash for a company that lost almost $5bn in 2025 and another $4bn in the first quarter of 2026? Or is this a once-in-a-generation opportunity to buy into a thrilling new industry led by the man who may soon become the world’s first trillionaire? Nobody can say. If investing was that easy, we’d all be rich.
What triggered the sell-off?
Before Friday’s slump, the S&P 500 enjoyed a nine-week winning streak. At some point, gravity had to kick in. Ironically, the trigger came in the shape of good news. The US economy added 172,000 jobs in May, beating expectations. Normally markets would celebrate that. Instead, investors worried stronger growth could force the US Federal Reserve to hike interest rates to curb inflation. Wall Street’s so-called fear gauge, the VIX, jumped 40% to its highest level in two months.
But let’s keep some perspective here. The S&P 500 is still up 7.7% this year and 23% over 12 months. Over five years it’s climbed 75%, with dividends on top. Equities remain one of the best ways to build long-term wealth. And every time US shares have retreated lately, investors have bought the dip. It could happen again. Especially given the excitement SpaceX is about to generate.
Does this FTSE 100 stock look attractive?
At The Twelfth Magpie, we urge investors to resist panicking in volatile markets. Instead, we suggest using them as an opportunity to buy quality shares at lower prices. Whether there’s a crash or not, one stock I really wish I owned is Aviva (LSE: AV).
The FTSE 100 insurer and asset manager has turned into a real all-rounder. Its shares have climbed 50% over five years, while yielding 6%–7%. With dividends reinvested, total returns must be approaching 90%.
Chief executive Amanda Blanc has transformed the business since taking charge. She’s simplified operations, cut costs and focused Aviva on capital-light insurance activities that generate stronger returns. The general insurance arm has performed well, while cash generation remains impressive. Adjusted operating profits have recovered nicely:
- 2025 — £2.20bn
- 2024 — £1.76bn
- 2023 — £1.47bn
- 2022 — £1.35bn
- 2021 — £2.27bn
There are risks, of course. Inflation may push up claims costs. The £3.7bn purchase of Direct Line entails a massive systems integration, which may eat up any savings. Competition remains fierce in growth areas such as bulk annuities. The shares look a little expensive too. The trailing price-to-earnings ratio has climbed to around 22.
Even so, with a trailing yield of roughly 6.5%, I still think Aviva is well worth considering. If wider market panic drags that valuation down, I see that as an opportunity to possibly buy at a lower price and bag a higher potential yield.
Should you invest £5,000 in Aviva Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Aviva Plc made the list?
Harvey Jones does not hold any positions in the companies mentioned.
