U.S. stock market showing hidden stress: individual stock volatility at March 2025 highs while VIX near January lows, indicating mega-cap tech concentration masking broader correction fears.
Macro & Markets ·
Individual stock volatility in the S&P 500 has reached its highest level since March 2025 at 49 points, while the VIX has fallen to 15 points, the lowest since mid-January, creating a 34-point gap between the two measures. This disparity has widened by 19 points or 127% since March, suggesting concentrated strength in mega-cap technology stocks is masking elevated stress among smaller constituents. Single stocks are pricing in correction-like moves despite the broader index remaining relatively calm, indicating a disconnect between headline market stability and underlying volatility across individual equities.