US stock market correlation between equal-weighted and cap-weighted S&P 500 hits record low of 0.67, signaling extreme concentration in mega-cap stocks.
Macro & Markets ·
The 52-week correlation between equal-weighted and cap-weighted S&P 500 performance has fallen to 0.67, marking a record low and indicating extreme market fragmentation heavily favoring mega-cap stocks. The metric has dropped 0.25 points since August 2025, a sharp departure from the 0.95 to 0.99 range that persisted for nearly 15 years before 2020. Even during the 2000 Dot-Com Bubble, this correlation never fell below 0.85, making current market concentration unprecedented in recent history.