The S&P 500 sits only about 3% below its latest record high, yet roughly 60% of
constituents are trading in bear-market territory, Goldman Sachs' Bobby Molavi,
EMEA head of execution services, warned. Molavi called the pattern a "stealth
bear market," flagging the oddity that both AI-capex-heavy tech giants and the
companies receiving that investment are being punished simultaneously. He said
investors have exited AI-related names amid doubts over the sustainability of
large AI spending, prompting a broad rotation that has hit tech hard in recent
weeks. Over the past month most S&P 500 names have nevertheless risen as flows
move from crowded trades into defensive and previously underweight sectors.
