Foreign investors are rapidly withdrawing from U.S. equities, with net outflows exceeding $5 billion, marking the third-largest withdrawal in history. As of now, foreigners hold approximately $16 trillion in U.S. stocks, with 50% of that amount owned by European investors. Concurrently, UBS Global Wealth Management has revised its year-end target for the S&P 500 index down to 6,400 from 6,600, reflecting broader market concerns. The S&P 500 has seen a decline of over 100 points in recent trading sessions, while the Nasdaq 100 has dropped by 445 points. The Magnificent Seven stocks, including major companies like Apple, Microsoft, and Meta, have all experienced declines, with Meta being the only stock in the group still trading above its 200-day moving average. Hedge funds have reduced their net exposure to these stocks to a two-year low, indicating a significant shift in market sentiment. Overall, fund managers' allocation to U.S. stocks has decreased sharply, with a net underweight of 23%, the lowest since June 2023. This trend is compounded by a notable drop in expected earnings growth for S&P 500 companies, which is now forecasted at 7.3% for Q1 2025, down from 11.7% at the end of December.