For Immediate Release
Chicago, IL – July 20, 2026 – Today, Zacks Investment Ideas feature highlights Nasdaq 100 Index ETF QQQ, S&P 500 Index ETF SPY, Micron MU, Western Digital WDC, SanDisk SNDK and Marvell MRVL.
The Tech Shakeout: Market Extremes & Gavin Baker's Bold Call
There is a Huge Divergence Between Tech & Everything Else
Thus far in July, the Nasdaq 100 Index ETF is down more than 4% while the S&P 500 Index ETF is green. According to OddStats (@OddStats) this would be the third time ever since QQQ started trading in 1999 that this has happened. The other two times were:
· December 2000 (9 months into the crash)
· July 2006 (15 months before the next crash)
Although the sample size of this stat is far too small to make any assumptions, its rarity shows how extreme and divergent the current stock market conditions are.
Daily Volatility Reaches Extremes
The Nasdaq 100 has moved up 1% or down in 20 of the past 26 trading days. Similar volatility has only occurred during COVID, the 2022 bear market, the Global Financial Crisis, and the Dot Com Bubble.
Growth/Momentum Stocks Have Taken the Brunt of the Pain
The Goldman Sachs US High Beta Momentum Index is on pace for its biggest monthly drop since the financial crisis.
Leading AI stocks such as Micron, Western Digital, SanDisk and Marvell are each down 24% or more over the past month.
That said, time frame context adds a critical perspective in this scenario. For instance, MU, WDC, and SNDK are each up more than 500% over the past year.
Gavin Baker: Can Lightning Strike Twice?
Gavin Baker is the founder, Managing Partner, and Chief Investment Officer of Atreides Management, a multi-billion-dollar crossover fund. Baker has been one of the best-performing money managers on Wall Street and was early on many of the AI stocks mentioned above. Thursday, Baker tweeted, "Risk/reward seems attractive again. Lots of cheap stocks with durable competitive advantages that are going to crush numbers for the next 6-12 quarters."
Baker may be worth listening to. The last time he made a bold call like this, it was a day away from the Iran correction low.
Bottom Line
Tech and momentum stocks are seeing some of the highest volatility in decades. Seasoned fund manager Gavin Baker believes this sharp correction is setting up an attractive reward-to-risk zone.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Western Digital Corporation (WDC): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
Sandisk Corporation (SNDK): Free Stock Analysis Report
Marvell Technology, Inc. (MRVL): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
State Street SPDR S&P 500 ETF Trust (SPY): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).