The S&P 500 is approaching a new high, but nearly 60% of stocks are still in a bear market Today I saw a set of data that the S&P 500 is not far from reaching a new high, but many stocks inside are not performing well. On September 21st, data showed that 59.2% of the constituent stocks had fallen at least 20% from their respective historical highs. That is to say, the index looks strong, but nearly 60% of the stocks are still far from their high point. The larger the market value of a company in the S&P 500, the greater its impact on the index. At present, the main support for the US stock market is still AI related large companies. If they rise well, they may bring the index up. So the index approaching a new high does not mean that most stocks are performing well, nor does it mean that the impact of high interest rates on the market has passed. For AI companies, building data centers and buying chips require a large amount of capital. If these investments need to be completed by borrowing money, high interest rates mean more interest expenses, and AI businesses must earn more money to cover these costs. Large companies with sufficient cash can afford it in the short term, but the market also has high expectations for their growth. If investment continues to increase but income and profits cannot keep up, investors may not be willing to continue buying their stocks at the original high price. For other enterprises, especially those with limited order growth and high debt, the pressure will be more direct. The low interest funds previously borrowed can temporarily hold on, but when the debt matures and it needs to be borrowed again, higher interest rates will begin to eat up profits. If there is no significant improvement in business, the enterprise will have to save money elsewhere. The new stores and projects that were originally planned to be opened may be put on hold for now. Recruitment may also decrease, and some people may temporarily not be compensated after leaving. If the pressure continues to increase, it may lead to a reduction in working hours or even layoffs later on. For ordinary people, they may already feel that it is harder to find a job and it is not as easy to change jobs and increase wages as before, even before they reach the stage of unemployment. In addition, the cost of buying a house or car with a loan is higher, so if you start to worry about your future income, your consumption will naturally become more cautious. But the money that residents spend less is the income that businesses receive less. After consumption slows down, companies may further reduce investment and recruitment, and the impact between employment and consumption will gradually expand. These are the changes that may occur if high interest rates continue, and it cannot be assumed that they have occurred solely based on a decline in stock prices. Returning to the current risk market, if the profits of other companies are squeezed, the index will rely more on AI companies to continue to perform well. But AI companies also have to face the question of whether they can recoup their investment. Once the income and profits do not meet market expectations, investors may lower the prices they are willing to pay, putting pressure on the stocks that support the index. If the decline further triggers a reduction in capital holdings, the impact may also extend to risky assets such as Bitcoin: native. The longer high interest rates persist, the more the market needs real profits to support current prices. One @ Gate, trade more markets