The S&P 500 has lost roughly $4 trillion in market capitalization since its record close on October 6, 2026, while more than 25 technology stocks have fallen by at least 20%. Despite a decline of about 3% in the index, Goldman Sachs estimates that 60% of its components are in bear market territory, a weakness masked by the weighting of its largest companies. Intel dropped between 29% and 45% in October after forecasting quarterly revenue below expectations, while Alphabet lost $500 billion in market capitalization in a single day. The selloff is mainly driven by investor doubts about artificial intelligence infrastructure spending and the uncertain profitability of those investments. If the share of constituents in bear market territory continues to rise, the broader weakness could become more visible in the index.
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