S&P 500 Near Record, Yet 41% of Stocks Are More Than 30% Below Highs

The benchmark is just 0.2% off its all-time peak, yet 41% of its constituents remain more than 30% below their own record highs. Clearly, a small number of large names are carrying the whole market.

Around 84% of the index’s components are down at least 10% from their peaks, while 17% have fallen more than 50%. Since the S&P 500 is weighted by market value, its biggest members dominate the index’s moves.

Which S&P 500 Companies Are Missing the Advance?

The Kobeissi Letter said Real Estate is in front, with 97% of its stocks down at least 10% from all-time highs.

The Materials sector is just behind at 96%, with Utilities at 94% and Consumer Discretionary at 92%.

Energy, by contrast, has been more resilient: 62% of its stocks are down at least 10%, Healthcare is at 70% and Information Technology at 72%.

Real estate equities, meanwhile, hit a record low last week relative to the S&P 500.

BREAKING: 84% of S&P 500 stocks are now trading at least -10% below their all-time highs.

Real Estate leads the drawdown, with 97% of stocks down at least -10%, followed by Materials at 96%, Utilities at 94%, and Consumer Discretionary at 92%.

By comparison, Energy has held up…

— The Kobeissi Letter (@KobeissiLetter) October 11, 2026

Yields on longer-maturity Treasuries touched 24-year highs on October 7. Such elevated rates can be a drag on rate-sensitive sectors, including real estate and utilities.

How Much Longer Can a Handful of Stocks Support the Index?

On October 6, CNBC reported, the benchmark closed above 7,800 for the first time. Nvidia, Apple and Microsoft together account for roughly a fifth of the S&P 500.

AI stocks are currently doing the work of supporting the index, according to Kevin Gordon, Schwab’s head of macro research and strategy. He noted, however, that the average member fell 14% from peak to trough since early August.

Goldman Sachs’ ex-AI index leaves out names the bank labels AI enablers. It gained 6.7% in the six months to October 6, compared with 18.3% for the S&P 500.

A single capex miss at a mega-cap — meaning a shortfall in AI spending — along with trimmer budgets could unsettle earnings, Gordon said.

Because 17% of members are already off by more than 50%, the S&P 500 could be without a wide base of support should AI spending slow. Whether that support holds may be shown by third-quarter reports from the biggest AI spenders.