Momentum ETF Rebounds After 10% Correction as Chipmakers Recover on Buy-the-Dip Calls
Updated
Updated · CNBC · Jul 8
Momentum ETF Rebounds After 10% Correction as Chipmakers Recover on Buy-the-Dip Calls
3 articles · Updated · CNBC · Jul 8
Summary
MTUM rose 0.4% by 12:30 p.m. ET after sliding more than 10% from its June 22 high to Wednesday's open, while Broadcom jumped 6% and most major chipmakers turned green early.
UBS, Goldman Sachs and Deutsche Bank traders said the selloff looked like an orderly momentum unwind rather than panic, citing intact AI and memory demand, profit-taking and concentrated outflows from trend-following strategies.
Samsung's revenue miss and Amazon's comment that it would issue no more debt this year helped deepen the memory-stock drop, though JPMorgan said Tuesday may have marked the bottom and urged investors to buy the dip.
Wall Street still sees risks from elevated earnings expectations, with Vital Knowledge calling the market's reaction to Samsung a red flag and UBS pointing to SK Hynix's planned 18 million-share U.S. listing as the next catalyst.