AI Stocks Stage Epic Rally: Morgan Stanley TMT Factor Soars 12% on July 21

According to Bloomberg, on July 21, Morgan Stanley's TMT momentum factor surged over 12%, marking the largest single-day gain on record—exceeding any daily performance during the dot-com bubble era. Goldman Sachs' high-beta momentum index climbed approximately 8.5%, its best single day since April 2025, while the high-beta momentum short index jumped 9.5%, posting its largest daily gain since 2021.

Semiconductors led the advance: the Philadelphia Semiconductor Index rose 4.6%, with Micron Technology climbing over 10%, Intel up 8.6%, SanDisk soaring 14%, and Cerebras Systems surging 18%. The rally followed three consecutive trading days of declines that had wiped out approximately 33% from high-beta momentum stocks. Traders facing heavy short positions, particularly from South Korean and Japanese markets, were forced to cover, triggering a self-reinforcing rally cycle amid extreme oversold conditions.