Buyers kick off December by bailing on sizzling momentum shares like Roku
Merchants on the ground of the New York Inventory Change.
Brendan McDermid | Reuters
The largest inventory winners this yr are main the market decline on Monday as traders dumped momentum shares after market sentiment turned bitter.
The highest 10 performers this yr within the S&P 500 are all within the purple on the primary buying and selling day of December. Roku, which was up five-fold this yr by Friday, tanked greater than 16% Monday after a downgrade from Morgan Stanley.
The S&P 500 fell from its file excessive on Monday after the worse-than-expected manufacturing information sparked risk-off temper. The iShares Edge MSCI USA Momentum Factor ETF (MTUM), one of many greatest momentum-focused change traded funds with greater than $9 billion of belongings underneath administration, fell 1.3% on Monday, greater than the broader market. The ETF holds Visa and Mastercard, which each fell greater than 2%.
Momentum methods, which purchase shares on profitable streaks and promote losers, have served traders properly this yr as growth-oriented expertise…