U.S. stock market breadth collapses; median stock down 15%
- The median S&P 500 constituent is down about 15% from its 52-week high, while the equal-weight index has underperformed the market-cap-weighted index by about 6 percentage points over the past six months.
- The equity risk premium has fallen below zero, erasing stocks’ valuation advantage over U.S. Treasury bonds. The pressure is coming from valuation contraction.
The index is being propped up by a handful of AI giants, and the equal-weight index is the first to break down. When risk appetite retreats, high-beta assets come under pressure too. Let’s see whether the 2,400 level holds; if it breaks, the previous low is in focus. Would you dare to add to your position here, or wait for confirmation?
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- The median S&P 500 constituent is down about 15% from its 52-week high, while the equal-weight index has underperformed the market-cap-weighted index by about 6 percentage points over the past six months.
- The equity risk premium has fallen below zero, erasing stocks’ valuation advantage over U.S. Treasury bonds. The pressure is coming from valuation contraction.
The index is being propped up by a handful of AI giants, and the equal-weight index is the first to break down. When risk appetite retreats, high-beta assets come under pressure too. Let’s see whether the 2,400 level holds; if it breaks, the previous low is in focus. Would you dare to add to your position here, or wait for confirmation?
$BTC $ETH $SOL