Market volatility continues apace, as news headlines, and even simple statements or policy hints, have shown the ability to move markets quickly in both directions. This kind of short-term volatility can feel like it carries greater meaning in the moment. But it doesn’t always tell us much about what is happening beneath the surface. In fact, it often gives investors the wrong message.1
My case-in-point this week: the growing gap between the market’s largest growth stocks and the broader index. As shown below, the once-heralded names in Technology and the “Magnificent Seven” have declined significantly more than the S&P 500 overall in 2026, with drawdowns approaching three times the magnitude of the broader market.
Source: Correction or Bear Market? | Zacks Investment Management Blog