S&P 500 gains conceal steep drops across most member stocks

Gains in Nvidia, Micron and a few other high-profile technology stocks are helping keep the S&P 500 near record highs. But about 84% of its stocks are at least 10% below their all-time highs, according to analysis from the Kobeissi Letter.

Real estate had the broadest pullback: 97% of stocks in the sector were down at least 10% from their highs. The figures were 96% for materials, 94% for utilities and 92% for consumer discretionary.

Across the index, 59% of stocks were down at least 20%, 41% more than 30% and 17% more than 50%. Energy held up relatively better, with 62% of its stocks down at least 10%; the figures were 70% for healthcare and 72% for technology.

The article said the weakness in housing- and retail-exposed sectors likely reflects earnings concerns tied to high interest rates. “A few names are carrying the entire stock market,” Kobeissi Letter strategists said.

The current bull market is the 11th since the 1950s and was on track to reach four full years on Oct. 12, according to Truist co-chief investment officer Keith Lerner. Its 119% advance is near the middle of historical bull-market gains, below the 184% average in Lerner’s measurement period.

Six of the 10 prior bull markets lasted longer than four years. The 2009-to-2020 cycle gained 401%, while the 1987-to-2000 bull market advanced 582%.