Over 60% of S&P 500 Stocks Fall Into Bear Market Territory as Tech and Crypto Shares Slide
More than 60% of S&P 500 companies have fallen at least 20% below their record highs, highlighting growing weakness beneath the benchmark index's relatively strong headline performance. Data compiled by the Kobeissi Letter show that steep declines across technology and cryptocurrency-related stocks have widened the gap between the index's overall level and the performance of its individual constituents.
The deterioration extends to major technology companies. Four members of the Magnificent Seven have dropped at least 15% from their respective peaks, while the group has collectively lost approximately $4 trillion in market capitalization from its highs. The figures suggest that the index's proximity to a record level does not reflect the broader experience of companies within it.
Why the S&P 500's Headline Performance Masks Weakness
The latest figures mark a deterioration from an earlier assessment in which 59% of S&P 500 companies were at least 20% below their peaks. At that time, a relatively small number of mega-cap stocks were providing much of the support for the broader index.
Only 10 companies accounted for roughly 70% of the S&P 500's advance from its March 30 low, according to the source report. The concentration of gains helped keep the benchmark near its highs even as losses spread across a large portion of its constituents.
However, the latest data indicate that the weakness has intensified, affecting several prominent companies that previously helped drive market gains. The Kobeissi Letter's analysis raises questions about whether the index's headline performance accurately reflects the health of the wider stock market.
Technology Stocks Record Steep Declines
Technology companies feature prominently among the stocks suffering the largest losses from their record levels. According to the Kobeissi Letter's figures, AppLovin has fallen 68% from its all-time high, while CoreWeave is down 60% and Western Digital has declined 54%.
Oracle has dropped 51%, and Arm Holdings has lost 49% from its peak. Alphabet, Broadcom, Meta, Micron, Adobe and Intel are also included among the technology stocks facing substantial declines.
Alphabet has fallen 31% from its reported all-time high of $400 to $282. Meta has declined by more than 21% since reaching its peak in mid-August and closed the previous week at approximately $625.
These losses illustrate how weakness among individual technology companies can deepen even while the broader index remains comparatively close to its record level.
Crypto-Linked Stocks Also Face Heavy Selling
Cryptocurrency-related equities have also recorded substantial losses. Coinbase has dropped 62% from its peak, according to the Kobeissi Letter's analysis, placing the exchange operator among the worst-performing stocks on the list.
Circle, the issuer associated with the USDC stablecoin, has declined 48% from its high. Robinhood, which operates across several financial services and has expanded its cryptocurrency activities, is down 44%.
The declines show that the pressure extends beyond traditional technology companies into publicly traded businesses with exposure to digital assets. Their losses form part of a broader pattern of weakness across growth-oriented and technology-related stocks.
Market Concentration Raises Questions About the Bull Market
The growing number of stocks trading well below their highs complicates the picture presented by an S&P 500 that remains close to its record. When a relatively small group of large companies drives index gains, the benchmark can appear resilient even as many individual stocks experience substantial declines.
The latest analysis suggests that the divergence has widened as losses spread among prominent technology and crypto-linked companies. Nevertheless, the Kobeissi Letter views the situation as a potential investment opportunity rather than necessarily evidence that a prolonged market collapse is beginning.
source: cryptopotato
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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