SPX Momentum Is Real: These Stocks Could Benefit

The article finds that recent SPX momentum is real: the S&P 500 gained over 10% in a 21-trading-day stretch and historical analysis of four similar rallies since 2022 shows that the 50 best-performing SPX stocks during those surges generally continued to outperform over the next one to three months. On average the top 50 returned ~6% in the next month (67% positive, 64% outperformed the SPX) and about 12% over three months (64% outperformed). The worst 50 during rallies lagged — ~1.4% in the next month and ~3.5% over three months with lower rates of beating the index. The piece highlights individual momentum leaders (INTC, NVDA, AMZN, GOOGL) and suggests that buying recent outperformers may be a higher-probability trade as momentum persists, informing short- to medium-term stock selection within the index.