iShares MTUM ETF Rebounds 5.5% as AI Losses Force Hedge Fund Unwind
Updated
Updated · CNBC · Jul 31
iShares MTUM ETF Rebounds 5.5% as AI Losses Force Hedge Fund Unwind
1 articles · Updated · CNBC · Jul 31
Summary
MTUM jumped 5.5% on Thursday and added 1.1% Friday after a sharp momentum-stock rebound, helped by forced trade unwinds at Situational Awareness following heavy AI-stock losses.
Nearly 12% down for July, the ETF is still headed for one of its worst months ever, leaving investors focused on whether the bounce can clear technical resistance and extend into August.
87,500 July payroll gains and a 4.3% unemployment rate are the next major test, with investors parsing economic data more closely as the Federal Reserve offers less guidance.
85% of roughly 300 S&P 500 companies have beaten estimates, and aggregate profit growth is tracking above 47%, giving bulls support even as August and September seasonality, rates and midterm elections threaten more volatility.