As the US stock market experienced a "Black Monday" surprise attack, strategists say that the momentum factor may have reached its bottom or is close at hand.

The US stock market showed strong growth in 2024, but the momentum factor suffered a major setback in 2025 after a strong performance the previous year. Recently, the US stock market has been hit hard by a "bloodbath" as President Trump's unpredictable tariff policies have made investors uneasy. However, veteran market strategist Marko Kolanovic said on Monday that the pain may soon be coming to an end. He believes that after the sharp drop in the Nasdaq 100 index, the momentum factor has the potential for a rebound. The tech-heavy Nasdaq 100 index fell by 3.8% in the stock market sell-off on Monday, marking the largest single-day percentage drop since August 2022 when it fell by 4.1%. On Monday, the Nasdaq 100 index fell below its 200-day moving average. "The momentum factor may be bottoming out, and the drop in the Nasdaq 100 index today is quite significant." The former Chief Market Strategist at J.P. Morgan said on X platform on Monday. State Street Corporation earlier this year stated that in 2024, momentum was the best performing factor in the US stock market, with investors flocking to high-growth companies with strong balance sheets, as well as other attractive firms. Cantor Fitzgerald stated on Monday that crowded positions and the "ever-changing macro environment" have had an impact on the momentum factor this year, but now it is "entering a buying range." The iShares MSCI USA Momentum Factor ETF fell by 4% on Monday. The top five holdings in the fund also saw significant declines: Apple Inc. (AAPL.US) fell by 4.9%, Meta Platform (META.US) fell by 4.4%, NVIDIA Corporation (NVDA.US) fell by 5.1%, Broadcom Inc. (AVGO.US) fell by 5.4%, and J.P. Morgan (JPM.US) fell by 4.2%.