The S&P 500 remains close to its record high, but most of its members do not. Data compiled by the Kobeissi Letter shows more than 60% of the index's companies are now at least 20% below their peaks.
Over 60% of S&P 500 components sit at least 20% below their record highs, according to the Kobeissi Letter. That puts them in commonly defined bear market territory, even as the headline index stays near its peak.
Big tech slips along with the broad index
Even the largest names are affected. Four of the Magnificent Seven have dropped 15% or more from their peaks, and the group has collectively erased approximately $4 trillion in market capitalization from its highs.
Alphabet leads the group, down 31% since its all-time high of $400, at $282. Meta has slumped by over 21% since its mid-August peak and closed last week at around $625.
Tech and crypto-linked stocks fall hardest
The Kobeissi Letter's list shows AppLovin down 68% from its all-time high. CoreWeave has corrected 60%, Western Digital has dropped 54%, and Oracle has declined 51%.
Crypto-linked equities are among the worst performers as well. Coinbase has fallen 62% from its peak, Circle is down 48%, and Robinhood has dropped 44%.
Narrow leadership weakens
The picture builds on an earlier divergence, when 59% of S&P 500 companies were at least 20% below their peaks while a small group of mega-cap stocks supported the index. In that earlier report, only ten firms had generated roughly 70% of the index's advance from its March 30 bottom.
Now, losses are spreading into some of the companies that had supported the index. Still, the Kobeissi Letter views the divergence as a potential opportunity rather than necessarily the beginning of a prolonged collapse.
Source: CryptoPotato
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