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Did you know 245 stocks of the S&P 500 are in a bear market? — and another 127 are in correction

December 13th, 2018 | by Richard Paul
Did you know 245 stocks of the S&P 500 are in a bear market? — and another 127 are in correction
Business and Finance
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Thomson-Reuters

Did you know 245 stocks of the S&P 500 are in a bear market? — and another 127 are in correction

That includes Apple, and Microsoft is close


The S&P 500 index has been in a correction since October.AP Photo/Richard Drew

SAN FRANCISCO — The S&P 500 is not yet in a bear market, but nearly half of its components are.

Hurt by worries about global growth, the S&P 500 on Monday fell 0.25 per cent, putting the benchmark index on track for its lowest close since May and stirring fears that a decade-old Wall Street rally may be over. Earlier in the session, the index was down as much as 1.9 per cent.

The S&P 500 index has been in a correction since October, defined by many investors as a drop of 10 per cent or more from a high. It has not crossed the 20 per cent threshold, widely viewed as the definition of a bear market.

However, 245 stocks in the S&P 500 – 49 per cent of its components – on Monday had fallen 20 per cent or more from their 52-week highs. Another 127 S&P 500 stocks had fallen 10 per cent or more from their 52-week highs, but less than 20 per cent.

The index on Monday was down about 11 per cent from its Sept. 20 record high close.

Apple Inc, until recently Wall Street’s most valuable company and the largest component of the S&P 500, has declined 27 per cent from its record high on Oct. 3, accelerating the index’s losses as investors fret over cooling demand for iPhones.

Pessimism has spread beyond the S&P 500 to smaller companies across the U.S. stock market, with hundreds of stocks hitting lows for the year on a daily basis in recent sessions.

S&P 500 components deepest in bear market territory include Nektar Therapeutics, Coty Inc and General Electric Co, each down more than 60 per cent from its 52-week high.

Microsoft Corp, which in late November dethroned Apple as Wall Street’s largest company, is down 8 per cent from its Oct. 3 record high.

© Thomson Reuters 2018

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