Nearly 40% of stocks in the S&P 500 index are down at least 20% from their 52-week highs, according to the latest figures. This suggests that gains in the index are concentrated among a smaller group of top-weighted companies rather than spread broadly across the market.
The divergence between the index's overall strength and weakness in individual stocks highlights uneven market performance. Some analysts are identifying underperforming stocks that may offer upside potential.