On October 5th, the Nasdaq closed at a record high, but 243 stocks on the Nasdaq hit new lows, while only 57 reached new highs. The number of new lows is more than four times the number of new highs. This data shows that the strong performance of the index doesn’t reflect the entire market. The rise of major tech companies like NVIDIA, Microsoft, Meta, and Tesla has clearly supported the index. After all, the index weights are distributed based on market capitalization, so the gains of a few large companies can offset the declines of many smaller ones. As a result, while the index keeps climbing, the stocks in many people’s portfolios may not necessarily follow suit. The more the index relies on a few heavyweight stocks for growth, the more vulnerable it becomes to changes in these companies’ earnings reports, performance expectations, and valuations. If other stocks fail to catch up, once the leading companies start to adjust, the market’s ability to sustain momentum will be quite limited. This suggests that what many people currently perceive as a bull market might not be a true bull market. Only AI and leading tech stocks are driving the growth, while many other stocks may still be stuck between bull and bear territory. This applies to U.S. stocks, and possibly to cryptocurrencies as well. Check out @Gate for trading across more markets!