Nearly half of Nasdaq 100 stocks are in correction, yet the index holds firm on strength in a few AI-driven giants.
The Nasdaq 100 remains resilient as 48% of its components trade at least 20% below recent highs, the highest share since early 2023. Despite this broad weakness, 64% of stocks still sit above their 200-day moving averages, signaling concentrated leadership rather than a full-blown downturn.
Historical context shows today’s narrow leadership is less severe than past selloffs. In 2022, roughly 80% of Nasdaq 100 stocks fell 20% or more, compared to the current 48%. The rally’s durability now hinges on a handful of AI-related firms, whose earnings growth has outpaced the rest of the market.
Market breadth indicators present a mixed picture. While the share of stocks in correction has doubled over the past year, the index’s overall strength suggests investors are willing to pay a premium for exposure to high-growth AI sectors.