According to The Kobeissi Letter, US technology stocks have reached their lowest relative price performance against global technology stocks in approximately 18 months, dropping to 1.6 points. Simultaneously, the ratio of US tech stocks relative to US non-tech stocks has declined to 1.5 points, also marking an 18-month low (source: The Kobeissi Letter, May 6, 2025). This dual downturn signals increased caution for traders, as weakening relative strength may indicate a shift in capital allocation away from US technology equities toward other sectors or regions. Active traders should closely monitor momentum indicators and sector rotation patterns to identify potential short-term selling opportunities or shifts in leadership within the broader equity market.

According to The Kobeissi Letter, US technology stocks are underperforming in 2025, with their relative price performance versus global technology stocks dropping to 1.6 points, the lowest level in approximately 18 months. Additionally, the ratio of US tech stocks compared to US non-tech stocks has declined to 1.5 points, also marking a significant low. This trend signals a shift in market momentum away from US tech equities, suggesting traders should closely monitor sector rotation, reassess portfolio allocations, and consider risk mitigation strategies as capital flows may increasingly favor global tech or domestic non-tech sectors (source: The Kobeissi Letter, Twitter, May 6, 2025).

According to The Kobeissi Letter, 52% of S&P 500 stocks have outperformed the index year-to-date in 2025, a notable rise from the 32% and 29% recorded in 2024 and 2023, respectively (source: @KobeissiLetter, May 1, 2025). This broad market participation signals stronger momentum for active traders. Utilities stocks are driving this trend, with 81% surpassing the S&P 500 YTD, followed by 71% and 61% outperformance rates in other leading sectors. Traders may find increased opportunities in utilities and sectors showing high relative strength, suggesting a shift from concentrated gains to broader market leadership.