Lamb Weston Holdings, Inc. (LW), a leading global manufacturer and distributor of value-added frozen potato products, saw its stock plummet by 5.10% in pre-market trading on Monday. This sharp decline comes as a surprise, given the company's recent strong performance amid broader market volatility.

Last week, Lamb Weston was highlighted as one of the few S&P 500 stocks that remained unscathed by the market mayhem triggered by President Trump's sweeping trade tariffs. The company had posted an impressive 9% weekly gain, standing out in the Consumer Staples sector, which is typically seen as a safe haven during economic turmoil. However, today's significant drop suggests a potential shift in investor sentiment towards the company.

The broader market context is crucial to understanding Lamb Weston's sudden decline. The S&P 500 has recently entered correction territory, with most stocks plunging due to fears of an all-out trade war and concerns about a global economic recession. While Lamb Weston had initially shown resilience, it appears that even defensive stocks are now feeling the impact of the escalating trade tensions and the unprecedented tariff hikes affecting approximately 185 countries.