Dec 10, 03:07 PM

Momentum Stocks Plunge 6.7%, Largest One-Day Decline Since February 2023, S&P 500 Down 40 Basis Points

On December 9, 2024, momentum stocks experienced a significant decline, marking the largest one-day underperformance against the S&P 500 since early August. The Morgan Stanley US Momentum Index, which had recorded a year-to-date return of 65%, plummeted by 6.7% within the first 90 minutes of trading, representing its largest single-day drop since February 2023. Additionally, momentum stocks overall fell by 6.1%, their worst performance since November 11, 2022. Analysts from UBS noted that despite the drop, the S&P 500 was only down 40 basis points, suggesting that this momentum unwind may not lead to substantial systematic supply issues.

#UBS

Written with ChatGPT (GPT-4o mini).

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Barchart@Barchart
1 year ago
Momentum Stocks plunged by 6.1% on Monday, their worst performance since November 11, 2022 🚨 https://t.co/omTeMSQPEo
Julian Klymochko@JulianKlymochko
1 year ago
Morgan Stanley on momentum yesterday: “The Long/Short index had a return of 65% year to date coming into today's session. The index cratered 6.7% in the first 90 minutes of trading.. It was the largest single day decline for the index since early February of 2023” h/t Jones https://t.co/8JyQq8KpRm
Julian Klymochko@JulianKlymochko
1 year ago
Morgan Stanley on the US Momentum Index yesterday: “The Long/Short index had a return of 65% year to date coming into today's session. The index cratered 6.7% in the first 90 minutes of trading.. It was the largest single day decline for the index since early February of 2023”

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Momentum Stocks Plunge 6.7%, Largest One-Day Decline Since February 2023, S&P 500 Down 40 Basis Points

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