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Momentum Stocks Under the Pressure
RiskReversal Recap: Tuesday, August 19th
RiskReversal Media
August 19, 2025
MARKET WRAP
Stocks slipped today, with SPX lower by -0.6%. But what caught most traders’ attention was the weakness in momentum names. Seeing the leaders of the rally stumble in unison is not something we’ve seen for a while. On the day: SPX -0.6%, QQQ -1.4% and IWM -0.8%.
Elsewhere, not a huge move in the US10YY but it did slide back down to 4.31%. Gold was slightly lower again. Oil declined by -1.5%. The dollar was up slightly. With some defensive names keeping the day from being worse (the DJIA finished in the green), the VIX was higher, but not by much, now 15.57.
Notable Gainers: INTC +6%, PANW +3%, HD +3.2%, PG +1.7%, KO +1.5%
Notable Losers: ORCL -5.8%, PLTR -9.4%, COIN -5.8%, NVDA -3.5%, MSTR -7.5%
After hours: Both SPY and QQQ are a tick green after hours.
MRKT Call: Guy and Dan discuss today’s sell-off in momentum names. How extraordinarily expensive the market is historically. The recent action in Berkshire as a potential market barometer. Also, recent moves in Intel and other stocks making deals in DC.
RiskReversal Pod: Peter Boockvar joins guy to preview Jackson Hole Also, global interest rates, particularly in Japan and Europe and analysis of the this week’s earnings reports from major retailers amidst tariff pricing pressures.
MRKT MATRIX: TODAY’S TOP STORIES
Dow pulls back from record, Nasdaq sheds 1% as Nvidia leads tech lower (CNBC)
Intel’s CEO Draws Support for Revival From SoftBank, Trump (Bloomberg)
Apple just landed a key win for the global encryption fight (CNBC)
How Pimco Outmaneuvered Apollo, KKR to Win $29 Billion Meta Deal (Bloomberg)
Silicon Valley’s AI deals are creating zombie startups: ‘You hollowed out the organization’ (CNBC)
Nvidia says it’s evaluating a ‘variety of products’ after report of new AI chip for China (CNBC)
Bessent says interviews for ‘incredible group’ of potential Fed chairs will start after Labor Day (CNBC)
Private Equity Firms’ Stocks Are Struggling, Despite Getting Into 401(k)s (WSJ)
Home Depot stock rises 2% as retailer maintains full-year forecast (CNBC)
US and Europe to Work Immediately on Ukraine Security Plan (Bloomberg)
WHAT’S NEXT?
Today’s selling pressure came largely from the big momentum names, a dynamic worth watching if it gains traction since they’ve been key drivers of the indices pretty much the entire rally from the April lows.
The VIX ended the day at just 15.50—still quite low — as the SPX held the 6400 level fairly confidently. But it is a reminder that it’s not too late to put on hedges, whether short-dated or further out toward year-end with vol still this low. The same is true across many of the momentum names themselves (though Nvidia remains an exception ahead of next week’s earnings, with its implied vol already elevated.)
In hindsight, names like PLTR had been telling a story over the past week, declining notably into today’s breakdown (now -15% in the past week). Some other moves like that were taking place without much notice from the broader market. That under the surface volatility is something we’ve been highlighting a lot lately. Speaking of index vol, tomorrow is VIX expiration. That can often mark a turning point in overall market volatility. As we noted in this weekend’s preview:
we may be heading into a stretch where SPX and QQQ make more decisive moves, rather than the recent pattern of index quietness masking sector and single-stock swings that mostly offset each other.
Also tomorrow, we get the FOMC minutes heading into the next few days of speeches in Jackson Hole, along side more retail reports in the morning.
Wednesday, August 20th
Pre-market: BIDU 5%, TGT 9%, TJX 4%, EL 10%, ADI 5%
11am - Fed Waller speech
2pm - FOMC Minutes
3pm - Fed Bostic speech
TODAY’S EPISODES
Watch MRKT Call’s newest episode: The Momentum Trade Takes a Rest
Guy and Dan discuss today’s sell-off in momentum names. How extraordinarily expensive the market is historically. The recent action in Berkshire as a potential market barometer. Also, recent moves in Intel and other stocks making deals in DC.
Analysis - SPX, BTC, NFLX, PLTR, TOL, LEN, VIX, NVDA, INTC
Your Questions:
William Jamison - BRK.B finally doing something.
harry kumar - Guy Adami, is your call still we see vix at 25 in August?
Learn more about our sponsor, Robinhood.
Watch RiskReversal Podcast’s newest episode: Peter Boockvar: Are Central Banks Losing Grip?
Guy is joined by Peter Boockvar, CIO of OnePoint BFG Wealth Partners, and publisher of The Boock Report. They discuss what we’re likely to see at Jackson Hole and its market-moving potential. Also, the global rise in interest rates, particularly in Japan and Europe, and how it impacts US markets. The conversation also touches on the evolving AI landscape, including the implications for corporate spending on AI-driven productivity tools, and competitive pressures from Chinese tech firms. The discussion wraps up with an analysis of the upcoming earnings reports from major retailers and their ability to manage price elasticity amid tariff pressures.
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