S&P 500 Sector Dispersion Hits Levels Not Seen Since 2000, 2001, and 2009
The S&P 500 has recorded 8 weeks in 2026 where the performance gap between its best and worst sectors exceeded 10%, a cluster of extreme dispersion seen only in the stress years 2000, 2001, and 2009 at this point in the year.
So far in 2026, the S&P 500 has experienced 8 weeks in which the return spread between its top- and bottom-performing sectors surpassed 10%. That is the highest count for this point in any year since the pandemic year 2020, and it has accelerated recently—half those weeks have occurred since late May, even as the index itself has been little changed.
The only other years with a similar pace of sector divergence by this stage were 2000, 2001, and 2009—all periods of pronounced market stress. For the full year, the record stands at 21 such weeks in 2000, followed by 15 weeks during the 2008 financial crisis.
The data underscore that beneath a seemingly calm surface, markets are experiencing historically high internal churn, with violent rotations creating a sharp gap between winners and losers.
Source: The Kobeissi Letter