A recent analysis by KobeissiLetter reveals a significant divergence in the U.S. stock market. The average stock correlation within the S&P 500 index over the past three months has dropped to 0.13, approaching its lowest point since 2018. This metric indicates how individual stocks within the S&P 500 relate to the overall index. The current low correlation suggests that most stocks are moving independently of the broader market trend. In contrast, during April’s market downturn, the average stock correlation was about 0.50. This divergence signifies a fragmented market, where technology companies like tech giants have been driving recent gains, while most other stocks have remained stagnant with minimal or negative growth.