60% of Tech Companies in Bear Market as Veterans Remain Optimistic

More than half of all tech companies in the S&P 500 are officially in bear market territory. Meanwhile, seasoned market experts insist there is no reason for pessimism, even as the numbers tell a very different story.

Heavy losses at major tech firms

Data from Turning Point Market Research shows that around 59% to 60% of S&P 500 tech companies are now trading more than 20% below their 252-day highs. That is the definition of a bear market. The chart shows that this percentage has risen sharply in recent months and is now at a level comparable to previous periods of market pressure.

The losses at individual companies are striking. Coinbase is down a full 69% from its peak. Oracle and Salesforce are both trading 57% below their highest price. These are not small names, but companies that until recently were considered stable growth stocks.

Veterans see no reason for concern

Remarkably, there are analysts with 30 years of market experience who argue that there is still no evidence to turn bearish. That stance stands in stark contrast to the hard numbers coming out of the market. Whether this is justified calmness or denial is a question that increasingly preoccupies investors.

The situation in the tech sector is also relevant for crypto, since a broader risk-off mood in the stock market typically puts pressure on digital assets as well. Anyone curious about how Bitcoin reacts to such signals can consult the earlier analysis on bullish and bearish divergence. The developments in the stock market are therefore something to keep a close eye on for everyone active in crypto.