Tech Stocks Diverge from Broader Market
As of July, the Nasdaq 100 Index ETF (QQQ) has seen a decline of over 4%, while the S&P 500 Index ETF (SPY) remains positive. According to OddStats, this marks only the third time since QQQ’s inception in 1999 that such a divergence has occurred, following similar instances in December 2000 and July 2006.
Heightened Volatility in Nasdaq 100
The Nasdaq 100 has exhibited extreme volatility, with movements of 1% or more occurring in 20 of the past 26 trading days. Such volatility has previously only been observed during major financial events like the COVID pandemic, the 2022 bear market, and the Dot Com Bubble.
Significant Drop in Momentum Stocks
The Goldman Sachs US High Beta Momentum Index is on track for its largest monthly decline since the financial crisis. Notably, key AI stocks, including Micron (MU), Western Digital (WDC), and others have each dropped over 24% in the last month, despite having gains exceeding 500% in the past year. Investment manager Gavin Baker has indicated that currently “lots of cheap stocks” could present attractive risk-reward opportunities moving forward.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
