WiremarketsDextape brief
The ‘Stealth’ Bear Market Is Getting Worse: 60% of S&P 500 Stocks Are Now Down 20%+
There's a major discrepancy between the S&P 500 and the value of most companies in it.
Dextape brief
Data compiled by the Kobeissi Letter shows more than 60% of S&P 500 companies now sit at least 20% below their record highs, even though the index remains near its peak. Four of the Magnificent Seven have dropped 15% or more from their highs, erasing roughly $4 trillion in market capitalization, a sum the article says exceeds the entire crypto market's value by a wide margin. Tech and crypto-linked shares show the steepest declines. AppLovin is down 68% from its all-time high, Coinbase 62% and CoreWeave 60%, while Circle and Robinhood have fallen 48% and 44%. Alphabet has slid 31% from its record, and Meta is off over 21% since its mid-August peak.
Why it matters: It shows losses spreading beyond the handful of mega-cap stocks that had propped up the index, a shift relevant to crypto readers given the exposure of crypto-linked equities.
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Dextape context
Built from Dextape’s own wire, stories and glossary.
Terms in this story
- Bear market
- A long stretch of falling prices and gloomy sentiment, commonly described as a drop of 20% or more from a recent high.