November 3 — The S&P 500 index is only about 3% shy of its all-time high, yet roughly 60% of its constituents have already fallen into bear market territory. Goldman Sachs trader Bobby Molavi described the setup as "quite astonishing," with the "strangeness" stemming from the fact that tech giants driving AI-related stocks higher and the companies receiving those investments have seen their shares decline simultaneously. "I don't understand why both sides would be punished by the market at the same time, especially when the basic expectation remains that AI will change everything," Molavi wrote in a client note. He called the current setup a "hidden bear market." As investors pull back from related stocks on concerns about the sustainability of massive AI spending, large-scale rotation has taken hold in the market, and tech stocks have been hit hard in recent weeks. On the other hand, most S&P 500 constituents have still risen over the past month, with capital shifting from crowded areas of trading into defensive sectors and previously underallocated areas.