S&P 500 hits a new high. But half the stocks are dropping On the day of the new high, 11 major sectors—10 up, 1 down. The biggest gainer? Utilities, up 3%. But not tech stocks. The 'Big 7' tech giants make up 35% of the S&P 500's weight. The index is standing tall, all thanks to them. Meanwhile, the median S&P 500 stock is down 16% from its own high. Only 47% of stocks are above their 200-day moving average. Just 25% are above their 50-day moving average. The index is partying at the peak of a bull market. Half the stocks are teetering on the edge of a bear market. Isn’t that bizarre? Goldman Sachs didn’t hold back, calling this the worst market breadth for U.S. stocks since the dot-com bubble. The 10-year Treasury yield is at 5.19%. The 30-year has surged to 5.55%. Rates are rising, and stocks are rising too. According to the textbooks, these two things shouldn’t happen at the same time. Either the market is betting on AI profits outpacing interest rates. Or the market is betting the Fed won’t dare to hike rates. Which one do you think it is?