U.S. Momentum Stocks Hit 4x S&P 500 Volatility on July 19, Down 24% in July

According to The Kobeissi Letter, on July 19, U.S. momentum stocks' three-week volatility relative to the S&P 500 surged to 4 times, a historic high. The ratio has grown over 4-fold in recent weeks and now exceeds levels during the 2020 pandemic market crash (2x) and the dot-com bubble burst (1.8x).

U.S. momentum stocks, including AI-driven high-growth tech names like Nvidia, Super Micro Computer, Palantir, D-Wave Quantum, and CoreWeave, declined 24% year-to-date in July, potentially marking the largest single-month drop since the 2008 financial crisis.