Nearly half of Nasdaq 100 stocks are in bear market territory, and the index keeps climbing anyway

The Nasdaq 100 looks healthy from a distance. Zoom in, and nearly half its members are bleeding.

Roughly 48% of Nasdaq 100 stocks are currently trading at least 20% below their respective peaks, a threshold that traditionally qualifies as bear market territory for individual names. That’s the highest proportion since March, and it tells a very different story than the index-level performance would suggest.

The few are carrying the many

Broader breadth metrics confirm the picture. Approximately 59% of Nasdaq 100 stocks were trading above their 50-day moving average in early July. Around 65% were above their 200-day moving average. Those numbers sound decent in isolation, but they mask the fact that nearly half the index is sitting in deep drawdowns from their peaks.

Semiconductors are adding to the turbulence

The semiconductor sector, typically a bellwether for tech momentum, has been a source of notable volatility. Names like Micron and Intel have experienced choppy trading in early to mid-July, contributing to mixed performance across the broader index.

Semiconductors matter disproportionately here because they sit at the intersection of several major investment themes: AI infrastructure buildout, consumer electronics demand, and geopolitical supply chain concerns. When chip stocks wobble, the ripple effects tend to be outsized relative to their index weight.

Why crypto investors should pay attention

Crypto markets and tech stocks have become increasingly correlated over the past several years, particularly Bitcoin and Ethereum with the Nasdaq. When risk appetite in equities narrows, it often signals shifting sentiment that bleeds into digital assets.

The 48% figure also provides useful context for evaluating whether broader risk markets are as strong as headline index levels suggest. Bitcoin has historically responded to genuine shifts in equity market breadth, not just index-level moves. If this narrowing trend continues, it could create headwinds for crypto even if the Nasdaq 100 index itself remains near its highs.

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