The S&P 500 remains near its record high, but underlying market conditions reveal considerable deterioration. According to data compiled by the Kobeissi Letter, more than 60% of companies in the index are now trading at least 20% below their respective record highs, positioning them in commonly defined bear-market territory.
This divergence highlights a concentration dynamic where a small group of mega-cap stocks has supported the headline index while the broader market has weakened. Only ten firms generated approximately 70% of the S&P 500's advance from its March 30 bottom, according to earlier analysis.
Magnitude Seven Stocks Under Pressure
The weakness has spread to some of the market's largest names. Four of the Magnificent Seven technology stocks have declined 15% or more from their peaks. The group has collectively erased approximately $4 trillion in market capitalization from its highs.
Alphabet leads decliners among the major stocks, having fallen 31% from its all-time high of $400 to $282. Meta's stock has declined more than 21% since its peak in mid-August, closing near $625.
Technology and Crypto-Linked Stocks Hardest Hit
Technology-related companies show the steepest losses. AppLovin has fallen 68% from its all-time high, followed by CoreWeave down 60%, Western Digital down 54%, and Oracle down 51%. Arm Holdings, Broadcom, Micron, Adobe, and Intel are also among significant decliners.
Crypto-linked equities rank among the worst performers. Coinbase has declined 62% from its peak, Circle is down 48%, and Robinhood has fallen 44%.
The Nasdaq 100 has declined nearly $5 trillion since October 6th.
