Markets
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Luke Kawa

The momentum unwind accelerates in megacaps, with MTUM on its longest streak of underperformance since 2023

First, high-flying speculative stocks took a nosedive. Then gold lost some of its shine. Now, the megacap components of the momentum trade are also looking wobbly.

The iShares MSCI USA Momentum Factor ETF, which holds stocks with the best risk-adjusted price performance over the past six months and one year, is trailing the SPDR S&P 500 ETF by more than 1 percentage point today through 11:27 a.m. ET.

As of 11:23 a.m. ET, more than one-fifth of its 125 members are down more than 2%, headlined by big tumbles in Netflix, Carvana, GE Vernova, Rocket Lab, Quanta Services, and Robinhood Markets.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

The momentum ETF is in the midst of its seventh straight session of lagging the SPDR S&P 500 ETF, its longest such streak of underperformance since Q4 2023.

The negative reactions to GE Vernova and Netflix’s earnings reports — both MTUM constituents — may be the catalyst for the big retrenchment in the space, the same way Walmart’s disappointing outlook sank the group (and the overall market) in the first quarter.

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Matt Phillips

Oil settles Friday at highest level since start of war

US oil prices moved higher in afternoon trading Friday, sapping strength from the stock market as they posted their highest close since the start of the Iran war.

After another day where the Strait of Hormuz was essentially closed to global tanker traffic, US futures for West Texas Intermediate settled up 3.1% at $98.71 a barrel for an 8.6% weekly gain, per Dow Jones data.

American officials have discussed using the US Navy to escort tankers through the narrow waterway between Iran and Oman, but have said plans for such convoys are not ready yet. However, it is unclear if military convoys would bring an end to the war-related dislocations in the oil market.

“It could help,” Tom Liles, senior vice president of upstream research at energy consulting firm Rystad, told Sherwood News in a recent interview. “It could also go in a lot of different directions if a Navy ship is hit or if a tanker is hit.”

Oil Posts Weekly Gains As Middle East Conflict Drags On

Oil Posts Weekly Gains As Middle East Conflict Drags On

American officials have discussed using the US Navy to escort tankers through the narrow waterway between Iran and Oman, but have said plans for such convoys are not ready yet. However, it is unclear if military convoys would bring an end to the war-related dislocations in the oil market.

“It could help,” Tom Liles, senior vice president of upstream research at energy consulting firm Rystad, told Sherwood News in a recent interview. “It could also go in a lot of different directions if a Navy ship is hit or if a tanker is hit.”

Tasha Matsumoto
20h
Stocks post third straight week of losses as Brent crude surges above $100

Stocks wiped out early gains to close lower amid the ongoing war in Iran.

Roaring bear
markets
Matt Phillips

Memory stocks rebound off last weeks losses

Memory stocks Micron, Sandisk, Western Digital, and Seagate Technology Holdings rose again Friday, putting these crucial providers of chips for AI inference work on track for big weekly gains after last week’s steep losses following the outbreak of war with Iran.

There’s no obvious trigger for the move higher for these shares this week, other than a bit of a recovery in the AI trade more broadly — AI beneficiaries like IT cable and connections maker Amphenol and custom chip and networking company Marvell Technology clawed back some gains this week — perhaps due Oracle’s earnings earlier, and some mean reversion to boot.

Micron is due to report earnings after the close of trading on Wednesday, with the company catching a couple price target hikes this week, including one from Wedbush on Friday.

Sandisk is something of a different story, as its enormous gains over the last 12 months — roughly 1,200% — have made it a momentum play beloved by the retail crowd.

It was up about 20% this week at around 11 a.m. ET. And its nearly 170% gain this year keeps the stock on top of the S&P 500, in terms of price performance.

Luke Kawa
3/13/26
The S&P 500’s internals are awful... while it’s still less than 5% from its record closing high

The breadth of negative momentum within the index’s constituents is even worse than at the tariff-induced market bottom in April 2025.

Illustration - Endometriosis
Luke Kawa
3/13/26
These two charts show how the Iran war is causing markets to price in a longer oil supply crunch

The rise of third-month Brent futures relative to front-month this week is unprecedented since at least 1989.

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