Most Stocks Are Up — But Still Lagging the Index 📉

Today's number is... 62.6%

That’s how many S&P 500 stocks are underperforming the index year-to-date.

Here’s the chart:

Let's break down what the chart shows:

• The chart plots each S&P 500 stock’s year-to-date return as a black bar, sorted from lowest to highest.
• The red line marks the S&P 500’s return.
• The yellow line marks the average stock return of all components in the S&P 500.

The Takeaway: Most stocks are up. Just not as much as the index.

Participation is solid. Over 60% of S&P 500 stocks are in the green this year.

But with only 37% outperforming the benchmark, it’s clear the biggest gains are coming from the strongest names.

The average stock is up 6.8%, while the index is up 11%. That’s not a problem.

It’s a feature of a cap-weighted market when large-cap leadership is doing its job.

This isn’t a sign of weakness. It’s a sign that trends are working from the top down.

It just isn’t a “rising tide lifts all boats” moment.

It’s a strong tide with a few boats pulling harder than the rest.

If anything, the setup leaves room for rotation to kick in.

So the question isn’t whether the rally is real. It is.

The question is whether the laggards catch up… or just get left behind.

Let me know!

Grant Hawkridge | Chief Aussie Operator, All Star Charts

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