S&P 500 breadth falls to lowest level since dot-com era, Goldman Sachs reports

Source Summary

Goldman Sachs reports that the breadth of the S&P 500—the proportion of stocks participating in market gains—has reached its lowest level since the dot-com bubble era. Market breadth measures how widely gains are distributed across the index; a narrow breadth indicates concentration in a small number of stocks.

Why it matters

Narrow market breadth suggests that index gains are driven by a concentrated group of stocks rather than broad-based strength, which historically has preceded market corrections.