EPA:STLAM 5 December 2025

March 20, 2026, 8:44 AM EDT. A Morgan Stanley analysis reveals 42% of S&P 500 stocks, over 200 companies, are in a bear market-defined as a 20% or more drop from their 52-week highs-despite the index itself being down only 4%. The software sector leads losses with 97% of stocks down at least 20%, followed by automobiles at 75% and media & entertainment at 63%. Conversely, energy and utilities show resilience. The S&P 500 recently broke below its crucial 200-day moving average (DMA) after a 214-day stretch above it. Historical data since 2000 shows that such breaks often precede short-term market declines, with an average drop of 5.3% in the following month. Medium-term outlooks show mixed results, but caution is urged, especially amid adverse macro conditions.