THE STEALTH BEAR MARKET IS GETTING WORSE: 60% OF S&P 500 STOCKS DOWN 20% OR MORE
The US stock market is showing growing signs of weakness beneath the surface. While the S&P 500 headline index has remained relatively resilient, more than 60% of its constituent stocks are reportedly trading at least 20% below their all-time highs.
According to The Kobeissi Letter, the growing disconnect between the major indices and individual stocks suggests that a stealth bear market is already underway across significant parts of the market.
21 Major Stocks Highlight the Growing Stealth Bear Market
Technology, semiconductor, software and crypto-related companies have experienced particularly heavy selling pressure.
The following stocks are trading substantially below their respective all-time highs:
Company | Ticker | Decline |
AppLovin | APP | -68% |
Coinbase | COIN | -62% |
CoreWeave | CRWV | -60% |
Arm Holdings | ARM | -55% |
Western Digital | WDC | -54% |
Intel | INTC | -54% |
Oracle | ORCL | -51% |
SanDisk | SNDK | -49% |
Circle | CRCL | -48% |
ServiceNow | NOW | -44% |
Robinhood | HOOD | -44% |
Seagate | STX | -42% |
Marvell Technology | MRVL | -39% |
Super Micro Computer | SMCI | -39% |
Broadcom | AVGO | -34% |
Alphabet | GOOGL | -31% |
Adobe | ADBE | -29% |
Micron | MU | -29% |
IBM | IBM | -23% |
Meta Platforms | META | -21% |
Amazon | AMZN | -21% |
Source: The Kobeissi Letter, October 30, 2026. Approximate declines from all-time highs.
AppLovin, Coinbase and CoreWeave are among the worst performers, with declines exceeding 60%. Even major companies such as Alphabet, Meta, Amazon and Broadcom have experienced significant corrections.
AI Stocks Lead the October Sell-Off
Artificial intelligence-related stocks have faced mounting pressure as investors question whether massive AI infrastructure investments will generate sufficient returns. The Nasdaq 100 reportedly lost nearly $5 trillion in market capitalization following its October 6 peak.
Investors are becoming increasingly selective, demanding stronger earnings growth and clearer evidence of profitability from companies making enormous AI investments.
Wall Street Ends October on a Weak Note
Friday, October 30, delivered another significant sell-off across US markets:
Nasdaq Composite: -2.8%
S&P 500: -2.0%
Dow Jones: -1.2%
For October, the Nasdaq declined approximately 5.2%, while the S&P 500 lost approximately 1.2%. The Dow finished the month higher by approximately 1.5%.
The technology-sector weakness highlights how vulnerable the broader market can become when heavily weighted stocks experience significant selling pressure.
What Should Investors Watch in November?
Several factors could determine whether the correction deepens or creates another buying opportunity:
Market breadth: Watch whether more S&P 500 stocks recover their 50-day and 200-day moving averages.
AI earnings: Monitor whether major technology companies can justify their enormous AI investments.
Treasury yields: Rising yields could place additional pressure on high-valuation growth stocks.
Nasdaq technical levels: Watch for stabilization, higher lows and recoveries of important support levels.
The Bottom Line
The market's headline indices do not tell the whole story. With more than 60% of S&P 500 stocks reportedly down at least 20% from their highs, the underlying market weakness is becoming increasingly difficult to ignore.
Although this does not necessarily signal the beginning of a prolonged bear market, investors should remain cautious and pay closer attention to individual stock performance and overall market breadth.
The real question is not whether the S&P 500 is holding up, but how many stocks are actually participating in the rally.
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