Major stocks face one of the worst sell-offs since the dot-com bubble

Huo Xing Finance reports that on July 3, renowned analyst degentrading published an analysis of extreme market volatility, noting that recently strong stocks suffered a "massacre"—possibly one of the most severe sell-offs of momentum stocks since the dot-com bubble, with an overall decline of approximately 24%. The Nasdaq 100 closed down 1.6%, while the S&P 500 edged lower slightly; however, beneath the surface, sector rotation was extremely intense. The fact that Apple rose 4.64% against the trend indicates significant pressure on the semiconductor sector. Given that most hedge funds were covertly long on recently strong stocks, many are likely to have been forcibly liquidated or voluntarily reduced positions during this sell-off. This morning’s U.S. stock market closing auction was relatively orderly, with closing strength exceeding expectations. Looking ahead, degentrading advises monitoring the market reaction in Korea during its trading session to the 14% plunge in SanDisk, particularly for SK Hynix and Samsung Electronics. degentrading stated that despite his own substantial portfolio exposure, he will remain unwavering.