Momentum Stocks See Strongest One-Day Gain Since Early 2000s Amid Leopold Liquidation
On Thursday, momentum stocks experienced one of their best single-day gains in history. The Bloomberg Pure Momentum Factor and the iShares MSCI Momentum Factor ETF (MTUM) both saw significant increases, with MTUM rising by 5.5%, its largest daily gain since April 2025. This surge was driven partly by a rebound from oversold conditions and the forced liquidation of positions held by AI investor Leopold Aschenbrenner's hedge fund Situational Awareness. The Nasdaq-100 index also had one of its best days, rising 3.4%, while the S&P 500 and Dow Jones Industrial Average advanced as well. The Philadelphia semiconductor index surged nearly 8% on the day, with South Korea's Kospi hitting a record single-day gain overnight. Citadel hedge fund acquired shares from Situational Awareness' portfolio, including large stakes in companies like Nebius, Micron Technology, CoreWeave, and SanDisk. Despite these gains, some analysts caution that such sharp rebounds often occur during downtrends rather than signaling the start of a new upward trend.
Topics: hedge funds margin calls momentum stocks MTUM ETF Nasdaq-100 stock market