US technology stocks are driving historic market gains: The MSCI USA Momentum Factor ETF, MTUM, has surged +38.2% year-to-date, more than 4 times the S&P 500’s equal-weighted index gain of +9.2%. The fund’s top holdings include Micron, MU, Intel, INTC, AMD, AMD, and Broadcom, AVGO. As a result, the MTUM to S&P 500 equal-weighted index ratio has risen to a record ~172. This ratio has surged +75.0% since early 2023, as momentum stocks have materially outperformed the average stock. This metric also now stands 14.7% above the 2020 pandemic recovery peak. Meanwhile, the MSCI US Momentum Index to MSCI US Index ratio has surged +24% over the last quarter, the largest quarterly outperformance on record, surpassing the 2000 Dot-Com bubble high of +21%. The momentum trade is leaving the rest of the market behind.(The Kobeissi Letter)