Skip to main content
JP Morgan Asset Management - Home
  • My collections
    View saved content and presentation slides
  • Log out
  • Products

      Funds

      • Performance & Yields
      • Liquidity
      • Ultra-Short
      • Short Duration

      Solutions

      • Funds Overview
      • Empower Share Class
      • Academy Securities
      • Cash Segmentation
      • Separately Managed Accounts
      • Managed Reserves Strategy
      • Capitalizing on Prime Money Market Funds
    • Insights

        Liquidity Insights

        • Liquidity Insights Overview
        • Global Liquidity Investment Outlook

          Global Liquidity Investment Outlook

        • Tokenization

          Explore the full whitepaper to learn how tokenized MMFs can transform your approach to cash management and position your organization at the forefront of digital finance.

        • Case Studies

          Read about companies with specific cash management challenges and the solutions when they worked with J.P. Morgan Asset Management.

        • Partnership with fintechs

          A focus on digital innovation and institutional liquidity solutions drive our dynamic partnership with fintech.

        • Leveraging the Power of Cash Segmentation

          The most effective strategy incorporates a clear investment policy, well-defined goals and parameters for liquidity, quality and return.

        • Cash Investment Policy Statement

          How to write an investment policy statement for your organization

        Market Insights

        • Market Insights Overview
        • Eye on the Market

          Explore Eye on the Market, timely commentary that offers views on the economy, markets, and investment portfolios by Michael Cembalest.

        • Guide to the Markets

          The J.P. Morgan Guide to the Markets illustrates a comprehensive array of market and economic histories, trends and statistics through clear charts and graphs.

        • Market Updates

          Read our weekly commentaries to get market insights that may help inform your investment strategy.

        Portfolio Insights

        • Portfolio Insights Overview
        • Currency

          Our currency team provides solutions for clients, controlling risk using passive management strategies and generating returns by actively managing global currencies.

        • Fixed Income

          We highlight themes and implications from various fixed income teams to help guide your portfolio decisions.

        • Long-Term Capital Market Assumptions

          Our Long-Term Capital Market Assumptions (LTCMAs) deliver forward-looking return, volatility and correlation estimates for 200+ asset and strategy classes in 20+ base currencies.

        • Sustainable investing

          We believe that ESG considerations can play a critical role in a long-term investment strategy.

        • Strategic Investment Advisory Group

          The Strategic Investment Advisory Group approaches today’s investment challenges with a global view across asset classes.

      • Resources
          • Overview
          • MORGAN MONEY
          • Account Management & Trading
          • Global Liquidity Investment Academy
          • Announcements
          • Webcasts
        • About us

            About us

            Backed by $4.6T in assets, we harness our active edge to deliver timely ideas and actionable insights that empower investors to achieve what matters most.

            • Overview
            • Diversity, Opportunity & Inclusion
            • Spectrum: Our Investment Platform
            • Sustainable and social investing
            • Our Leadership Team
          • Contact us
          • English
          • MORGAN MONEY LOGIN
            • My collections
              View saved content and presentation slides
            • Log out
          • Log in
          • MORGAN MONEY LOGIN
          Log in
          You are about to leave the site Close
          J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
          CONTINUE Go Back
          On the Minds of Investors

          What’s happening to stocks beneath the index?

          MP
          Meera Pandit

          Global Market Strategist

          Published: 03/27/2026
          Stocks are not only not moving lower in-sync, but like sector performance, many individual names are outperforming.

          Last year, investors contended with every flavor of risk: tariffs, war, government shutdown and existential AI concerns. Yet the start of this year is rivaling all of last year, condensed into one quarter. This year, war has led to soaring gasoline prices, AI anxieties have bled into software, financials and private credit, a new Fed Chair waits in the wings and tariff uncertainty has been renewed with the IEEPA Supreme Court ruling.

          Despite the concentrated chaos, the S&P 500 has experienced a maximum drawdown thus far of just 7%, compared to an average intra-year decline of 14.2% over the last 46 years, a sharp contrast to the 19% drawdown weathered in April 2025. The VIX has averaged 24.9 since the war broke out vs. 19.7 on average over the past 30 years. Yet, underneath the serene surface is a tempestuous undertow of sector and single-stock dispersion.

          What lies beneath relatively benign S&P 500 index performance?

          • Sector dispersion: Given the geopolitical shocks emanating from oil-sensitive countries, energy has been a breakout performer, up 35% YTD. However, five other S&P 500 sectors (materials, industrials, staples, utilities and real estate) are positive YTD, and all except real estate were up double-digits pre-war. Meanwhile, financials, discretionary and tech are all down high single-digits YTD, although have faced limited downside relative to other sectors since the war. Not only is there sector dispersion, but also significant intra-sector divergences. While financials are down nearly 10%, one-third of stocks in the sector are outperforming the S&P 500. Among the three growth-oriented sectors, 44% of stocks are outperforming the index. More than two-thirds of stocks in the top 5 sectors are beating the S&P 500, along with every stock within energy.
          • Index vs. stock volatility: The average reading on the VIX in 2026 has been exactly in line with the long-term average cited above, whereas the VIX EQ1, which measures single-stock volatility within the index at the constituent level, is materially above its medium-term average2. For the five years prior to the pandemic, the VIX EQ averaged 25.6, but since 2021 has oscillated around 34.7, and sits at 40.5 currently. This elevated value reflects the growing single-stock dispersion.
          • Single-stock dispersion: As we highlighted in our Weekly Market Recap last week, the average rolling 3-month pairwise correlation among stocks in the S&P 500 is 13%, lower than it’s been 98% of the time since 2022. Stocks are not only not moving lower in-sync, but like sector performance, many individual names are outperforming. Year-to-date, 56% of S&P 500 stocks are outperforming the index. If the year were to end today, that would be the highest share on a calendar year basis since 2022, and 2010 before that.
          • Magnificent 7 dispersion: A distinct trend emerging since mid-2025 has been dispersion among the Mag 7, a cohort that moved synchronously higher in 2023 and 2024. Average rolling 3-month pairwise correlation peaked on May 30, 2025 at 78%, but has dropped to just 26% today after experiencing a 3-year low of 19% at the beginning of March. The Mag 7 are a monolith no more, and should be distinguished carefully.

          Volatility and dispersion beneath the surface create opportunities within the equity market that may not be obvious at the index level. While the macro outlook remains cloudy, one thing is clear: the environment is ripe for stock picking and active management. 

          1 The VIX EQ was launched in November 2024 by the CBOE and S&P and measures the 30-day implied volatility of S&P 500 constituents, providing a bottom-up view of volatility compared to the top-down view of the VIX.
          2 Data inception June 19, 2014. 
           
          25404246-287c-11f1-875e-759b98340cbc
          • Equities
          • Markets
          • Volatility
          J.P. Morgan Asset Management

          • Investment stewardship
          • About us
          • Contact us
          • Privacy policy
          • Cookie policy
          • Sitemap
          • Accessibility
          J.P. Morgan

          • J.P. Morgan
          • JPMorgan Chase
          • Chase

          READ IMPORTANT LEGAL INFORMATION. Legal Disclaimer >

          The value of investments may go down as well as up and investors may not get back the full amount invested.

          Copyright 2026 JPMorgan Chase & Co. All rights reserved.