Wall Street Shaken by Massive Momentum Stock Sell-Off; Is Bull Market Breaking?

• Wall Street trading floors were shocked by the magnitude of a momentum stock sell-off, raising concerns about the bull market's stability.
• The iShares MSCI USA Momentum Factor ETF (MTUM) plunged 3.7% on Wednesday, its worst day since April's tariff-induced panic, with high trading volume.
• The sell-off was partially masked by strength in consumer staples and banks, limiting the S&P 500's overall decline to about 0.5%.
• Bank of America and JPMorgan noted Wednesday's momentum drawdown as one of the worst one-day moves in the last decade or two.
• Goldman Sachs suggests momentum dips are typically buying opportunities but advises short-term hedging due to extreme volatility and lack of capitulation signals.