Stocks had a great day on the surface. But something alarming occurred not seen since 1999 — SkimNews
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- Nasdaq Composite surged 2% to a new record on Monday while the S&P 500 jumped about 1.5%, sitting less than 1% below a fresh 52-week high.
- Despite the index-level rally, 30 S&P 500 stocks hit new 52-week lows while only 7 reached fresh highs — new lows outnumbered new highs.
- According to Jason Goepfert of SentimenTrader and NextGen News, the last time the index advanced at least 1% to within 1% of a new 52-week high with new lows outpacing new highs was December 21, 1999, months before the Dotcom Bubble peak.
- The only prior historical instance of that dynamic was July 23, 1929, per Goepfert's post on X.
- Art Hogan of B. Riley Wealth noted the S&P 500's gains came from communication services, information technology, and consumer discretionary; only information technology sits within 1% of its own 52-week high, while communication services and consumer discretionary remain 4% and 7% below, respectively.
- Hogan warned the market cannot make new highs if Middle East tensions persist, energy prices stay elevated, and the Fed continues hiking rates, adding that current leadership makes new lows easier to produce than new highs.
Why it matters: Two of the three times in nearly a century that an index rallied to within 1% of a high while new 52-week lows outnumbered new highs — 1999 and 1929 — came within months of major market tops. The current session layers in energy-price and war risks and a narrow leadership picture, with only information technology near its own 52-week high among the leading sectors.
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