Volatility has intensified among AI hot stocks such as NVIDIA, with the relative volatility reaching 4 times that of the S&P 500 index.

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Mars Finance News: On July 19, The Kobeissi Letter said that the three-week volatility of U.S. momentum stocks relative to the S&P 500 index has risen to 4 times, setting a historical high. Over the past few weeks, this ratio has grown by more than 4 times. This momentum-stock group includes high-growth technology stocks at the center of the AI boom, such as Nvidia, Super Micro Computer, Palantir, D-Wave Quantum, and CoreWeave. For comparison, the ratio peaked at about 2 times during the market crash in 2020 amid the COVID-19 period, and at about 1.8 times during the burst of the dot-com bubble. Current levels are clearly well above the above periods. Meanwhile, the U.S. momentum stock index has fallen a cumulative 24% since July, or the largest single-month decline since the 2008 financial crisis. Stocks that had previously been the best performers are quickly losing market favor.
NVDA2.15%
SMCI0.74%
PLTR0.86%
CRWV7.33%
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