This powerful stock-market momentum trade has hit a wall after seeing biggest unwind since 2001

U.S. stocks are experiencing a sharp rotation away from the high-momentum trade, especially semiconductors, after a steep multi-week unwind that Goldman Sachs said was the biggest relative selloff in momentum since the early 2000s. The pressure has not materially damaged the broader S&P 500, which remains near record highs because investors are rotating into lagging sectors such as financials and back into some Big Tech names. The Invesco S&P 500 Momentum ETF is down 7.1% in July and headed for its worst monthly drop since March 2025, while the PHLX Semiconductor Index has fallen 13% this month despite being up 75% year to date. The article frames the move as a healthy market rotation rather than a broader breakdown, supported by strong earnings and resilience across the index.