TMT and Energy Lead S&P 500 While One in Six Stocks Drops 50%

The Technology, Media, and Telecom (TMT) and Energy sectors emerged as the only S&P 500 groups to post gains over the past 30 days, a narrow leadership dynamic that contrasts sharply with the broad weakness affecting the rest of the index. While these two sectors advanced, every other sector in the benchmark recorded declines, highlighting a significant divergence in performance across the market's constituent groups.

The underperformance was widespread, with several major sectors suffering double-digit percentage drops from their starting points in the last month. Real Estate Investment Trusts (REITs) led the decline at 9.8%, followed by Materials at 7.9% and Financials at 7.7%. Industrials fell 5.8%, while Utilities dropped 4.6%. Consumer Discretionary lost 3.6%, and Healthcare declined 3.5%.

Beneath the surface of the index, which remains near record levels, a substantial portion of individual stocks is experiencing severe drawdowns. According to the data, 85% of S&P 500 constituents are currently trading more than 10% below their all-time highs. The distress deepens for a majority of the market: 59% of stocks are down more than 20%, and 41% have fallen more than 30% from their peaks.

The most extreme losses are concentrated in a significant minority of the index members. Twenty-six percent of S&P 500 stocks are down more than 40%, while 17% are experiencing drawdowns of more than 50%. This means that one in six companies within the benchmark is currently trading at half or less of its historical high, a level of decline that stands in stark contrast to the overall index's proximity to its all-time highs.