Mag‑10 Stocks Falter While Broader Market Builds Correlations

The elite group of mega‑cap growth stocks known as the “Mag 10” has begun underperforming the broader S&P 500, and that shift is rippling through the market in unexpected ways. According to the recent analysis by Seeking Alpha, implied volatilities edged higher across major asset classes—with the VIX closing at 19.08—while the correlation among stocks roughly doubled from 7.4% to 15% following the Federal Reserve’s hawkish tone. The headline driver: a −6.3% underperformance by the Mag 10 relative to the S&P 500 as earnings season nears its end (with about 95% of S&P firms having reported). With correlations rising, diversification benefits may be dwindling—investors used to relying on non‑tech segments for steadiness may now be seeing more synchronized movement across sectors. Watch this space: if the Mag 10 slide deepens and rates remain elevated, the ripple effect could tighten further. #Mag10 #StockCorrelations #VolatilityRise #MarketUnderperformance #SlimScan #GrowthStocks #CANSLIM