The illusion of growth
Real talk: The S&P 500 is up 14% this year, hitting record highs that sound like a major W for your portfolio. But if you look under the surface, the vibes are off. A staggering 4 in 10 stocks in the index are actually lower in 2026. The index is being carried hard by a tiny squad of heavy hitters—mostly AI and chipmakers—while the rest of the market is lowkey struggling.
The AI carry job
The gap between the headline number and the average stock is wild. While the median stock in the index has only crawled up about 4%, giants like Sandisk and Micron Technology have more than tripled. Nvidia, the current main character of Wall Street, has contributed nearly 2% to the index’s total gain all by itself. Meanwhile, over 200 companies in the S&P 500 are in the red for the year, with a quarter of them down 11% or more.
Why it matters
It’s giving a very narrow market. As Tim Ghriskey, a senior portfolio strategist at Ingalls & Snyder, pointed out, the AI story is so loud that it’s sucking all the oxygen (and capital) out of the room. Investors are laser-focused on tech while sectors like industrials, consumer goods, and real estate are getting ghosted because of the Federal Reserve’s recent rate hikes. Ross Mayfield, an investment strategy analyst at Baird, noted that anything outside the AI trade or energy is facing huge headwinds. If you’re checking your own investments and they aren’t in the AI hype cycle, don't be surprised if the numbers aren't matching the S&P’s record-breaking momentum.
