By Noel Randewich
SAN FRANCISCO (Reuters) – The S&P 500 is not yet in a bear market, but nearly half of its components are.
Hurt by worries about global growth, the S&P 500 <.SPX> on Monday fell 0.25 percent, putting the benchmark index on track for its lowest close since May and stirring fears that a decade-old Wall Street rally may be over. Earlier in the session, the index was down as much as 1.9 percent.
The S&P 500 index has been in a correction since October, defined by many investors as a drop of 10 percent or more from a high. It has not crossed the 20 percent threshold, widely viewed as the definition of a bear market.
However, 245 stocks in the S&P 500 – 49 percent of its components – on Monday had fallen 20 percent or more from their 52-week highs. Another 127 S&P 500 stocks had fallen 10 percent or more from their 52-week highs, but less than 20 percent.
(Graphic: Half of S&P 500 stocks in bear market – https://tmsnrt.rs/2zOJImb)
The index on Monday was down about 11 percent from its Sept. 20 record high close.
Pessimism has spread beyond the S&P 500 to smaller companies across the U.S. stock market, with hundreds of stocks hitting lows for the year on a daily basis in recent sessions.
(Graphic: Stocks hitting 52-week lows – https://tmsnrt.rs/2SBWw6w)
S&P 500 components deepest in bear market territory include Nektar Therapeutics
(Graphic: Bottom 10 S&P 500 stocks relative to 52-week highs – https://tmsnrt.rs/2SK1ZZh)
(Reporting by Noel Randewich; Editing by Richard Chang)