Market Breadth Widens: Most Stocks Beating the S&P 500 for First Time in Four Years

The number of stocks outperforming the S&P 500 has climbed to the highest level in four years, with the average stock now beating the index, MarketWatch reported. The shift marks a break from the pattern of the past several years, when index returns were driven disproportionately by a small group of large technology companies. Broader participation is typically read as a sign of healthier internal market conditions, though it also implies weaker relative performance from the previous leadership group. The report suggested breadth could widen further, a view that would depend in part on the path of interest rates and the trajectory of AI-related capital spending.