Karla Barker 
The S&P 500 is still close to its record high, but the market underneath looks much weaker. Data compiled by The Kobeissi Letter shows more than 60% of S&P 500 companies are now at least 20% below their own peaks. That puts a large part of the index in bear market territory, even while the headline number stays near the top.
Index Masks the Damage
The split is not new, but it has worsened. An earlier reading found 59% of S&P 500 firms at least 20% below their highs. At that time, only ten companies had produced roughly 70% of the index’s advance from its March 30 bottom. Now the losses are spreading into some of the names that helped hold the index up. Four of the Magnificent Seven are down 15% or more from their peaks, and the group has erased about $4 trillion in market value from its highs.
Alphabet is one clear example. Its stock has dropped 31% from an all-time high of $400 to $282. Meta has fallen more than 21% since its mid-August peak and closed last week near $625. Those moves matter because they come from large, widely held companies, not just small speculative names.
Tech and Crypto-Linked Stocks Hit Harder
Technology-related stocks show deeper damage. Kobeissi’s list puts AppLovin down 68% from its high, Coinbase down 62%, CoreWeave down 60%, Arm Holdings down 55%, Western Digital down 54%, Intel down 54%, Oracle down 51%, and Circle down 48%. Robinhood is down 44%. Broadcom, Alphabet, Adobe, Micron, IBM, Meta, and Amazon also appear on the list, with declines ranging from about 21% to 34%. The Nasdaq 100 has lost nearly $5 trillion since October 6, according to the same commentary.
Crypto-linked equities are not the only weak spot, but they are among the worst performers. Coinbase and Circle have fallen sharply from their peaks, while Robinhood has moved deeper into crypto over the past year and is also down 44%. That does not prove crypto is driving the selloff. It does show that investors are treating crypto-exposed stocks as risk assets in the current pullback.
Opportunity or Warning?
The Kobeissi Letter still sees the divergence as a possible opportunity, not necessarily the start of a long collapse. That view may be too optimistic. When more than 60% of an index is in a drawdown of 20% or more, the headline level can hide real pain. For now, the S&P 500 looks calm on the surface. Underneath, the selling is broad and, in tech and crypto-linked names, quite severe.