The ratio of the equal-weighted S&P 500 to the S&P 500 index has fallen to 1.11, marking the lowest level since May 2003. This figure is significantly below the low of approximately 1.18 recorded during the 2008 Financial Crisis.
The decline in the ratio has intensified as the equal-weighted S&P 500 has underperformed the cap-weighted index for five consecutive trading sessions. Since the bottom of the 2022 bear market, when the ratio was around 1.50, the ratio has been in rapid decline.
A similar trend of underperformance was observed during the late 1990s, indicating that large-cap technology stocks are currently dominating market performance.
For more information on related developments, see recent developments in the economy.
