The Kobeissi Letter(@KobeissiLetter):US stocks have never been this disconnected from each other: The median 63-day correlation between individual S&P 500 stocks and the index itself is down to +0.10, the lowest on record. This measures how closely individual stocks move with the broader index, with a reading this low meaning the index is being driven by a small group of stocks while most move independently. This figure has dropped -71% over the last 5 months. By comparison, during the March 2025 selloff, the median 63-day correlation surged to as much as +0.76. To put this into perspective, the previous all-time low was +0.16 following the 2000 Dot-Com Bubble burst. The market is more concentrated than ever.

2026.08.31 21:56

US stocks have never been this disconnected from each other: The median 63-day correlation between individual S&P 500 stocks and the index itself is down to +0.10, the lowest on record. This measures how closely individual stocks move with the broader index, with a reading this low meaning the index is being driven by a small group of stocks while most move independently. This figure has dropped -71% over the last 5 months. By comparison, during the March 2025 selloff, the median 63-day correlation surged to as much as +0.76. To put this into perspective, the previous all-time low was +0.16 following the 2000 Dot-Com Bubble burst. The market is more concentrated than ever.