The ‘Stealth’ Bear Market Is Getting Worse: 60% of S&P 500 Stocks Are Now Down 20%+

The S&P 500 remains remarkably close to its record high, but a closer look shows the index’s damage has worsened considerably over the past several weeks.

According to data compiled by the Kobeissi Letter, more than 60% of companies in the headline index are now in bear-market territory, while some of the largest technology and crypto-linked stocks have fallen much more sharply.

S&P 500: ATH or Bear Market?

The analysts reported that over 60% of the S&P 500 components are now at least 20% below their respective record highs, putting them in commonly defined bear-market territory. Even some of the biggest names in the market are no longer immune. The analysis shows that four of the Magnificent Seven have dropped by 15% or more from their peaks. Moreover, the group has collectively erased approximately $4 trillion in market cap from its highs.

This is more than the entire crypto market’s capitalization by a long shot. The deterioration has accelerated quickly, with Alphabet leading the pack after dumping by 31% since its all-time high of $400 to $282. Meta’s stock has slumped by over 21% since its peak in mid-August, and closed last week at around $625.

These adverse developments build on an earlier divergence covered by us, when 59% of S&P 500 companies were at least 20% below their peaks even as a small group of mega-cap stocks continued supporting the index. Only ten firms had generated roughly 70% of the S&P 500’s advance from its March 30 bottom.

Tech and Crypto Stocks Have It Worst

Kobeissi’s latest list highlights the issue for technology-related companies. It shows that AppLovin has plummeted by 68% from its all-time high, followed by a 60% correction from CoreWeave, a 54% drop from Western Digital, and Oracle’s 51% decline. Arm Holdings’ shares have nosedived by 49%, while Alphabet, Broadcom, Meta, Micron, Adobe, and Intel follow suit.

Crypto-linked equities are among the worst performers as well. The list from the Kobeissi Letter also includes Coinbase, which has tanked by 62% from its peak. Circle is down by 48%, while Robinhood, which is not exclusive to crypto but has dipped its toes even deeper in the past year, has dived by 44%.

This makes the current market increasingly difficult to describe as a conventional bull market simply because the headline index remains close to its peak. The concentration that previously kept the S&P 500 near its highs is weakening as losses spread into some of the very companies that had supported it.

Nevertheless, the Kobeissi Letter still views the divergence as a potential opportunity rather than necessarily the beginning of a prolonged collapse.

Tech Stocks in Bear Market Territory:

1. AppLovin, $APP: -68%
2. Coinbase, $COIN: -62%
3. CoreWeave, $CRWV: -60%
4. Arm Holdings, $ARM: -55%
5. Western Digital, $WDC: -54%
6. Intel, $INTC: -54%
7. Oracle, $ORCL: -51%
8. SanDisk, $SNDK: -49%
9. Circle, $CRCL: -48%
10. ServiceNow, $NOW: -44%
11. Robinhood, $HOOD: -44%
12. Seagate, $STX: -42%
13. Marvell Technology, $MRVL: -39%
14. Super Micro Computer, $SMCI: -39%
15. Broadcom, $AVGO: -34%
16. Alphabet, $GOOGL: -31%
17. Adobe, $ADBE: -29%
18. Micron, $MU: -29%
19. IBM, $IBM: -23%
20. Meta, $META: -21%
21. Amazon, $AMZN: -21%

The Nasdaq 100 is now down nearly -$5 trillion since October 6th.

— The Kobeissi Letter (@KobeissiLetter) October 30, 2026

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