2 hours ago
Even bullish S&P 500 investors are waiting for a market correction. But it's already here for nearly two-thirds of stocks.
Roughly 300 stocks in the S&P 500 — including Trade Desk (TTD), Costar (CSGP) and Fiserv (FISV) — are down 10% or more from their 52-week highs, says data from S&P Global Market Intelligence and MarketSurge. That puts them in a correction — or worse.
Such widespread pain in the S&P 500 signals that a dreaded sell-off is already happening in slow motion. Many investors are unnerved that the S&P 500 is trading at its highest valuation since the dot-com bubble burst in 2021, based on the Shiller/CAPE PE. The measure stands at 42, close to its December 1999 peak of 44, says Nicholas Colas of DataTrek Research. Roughly a third of S&P 500 stocks are down 20% or more from their highs — putting them in bear market territory.
"Bubbles burst when real world outcomes fall short of expectations, not just in terms of corporate fundamentals but monetary and fiscal policy as well," Colas said.
Much of the concern centers on AI plays. And, to be sure, shares of AI king Nvidia (NVDA) are down more than 10% from their 52-week highs. But even more pain is being felt in other areas of tech.
#highs #colas #correction #already
Roughly 300 stocks in the S&P 500 — including Trade Desk (TTD), Costar (CSGP) and Fiserv (FISV) — are down 10% or more from their 52-week highs, says data from S&P Global Market Intelligence and MarketSurge. That puts them in a correction — or worse.
Such widespread pain in the S&P 500 signals that a dreaded sell-off is already happening in slow motion. Many investors are unnerved that the S&P 500 is trading at its highest valuation since the dot-com bubble burst in 2021, based on the Shiller/CAPE PE. The measure stands at 42, close to its December 1999 peak of 44, says Nicholas Colas of DataTrek Research. Roughly a third of S&P 500 stocks are down 20% or more from their highs — putting them in bear market territory.
"Bubbles burst when real world outcomes fall short of expectations, not just in terms of corporate fundamentals but monetary and fiscal policy as well," Colas said.
Much of the concern centers on AI plays. And, to be sure, shares of AI king Nvidia (NVDA) are down more than 10% from their 52-week highs. But even more pain is being felt in other areas of tech.
#highs #colas #correction #already
