Megacap Stocks Prop Up S&P 500 as Many Components Hit New Lows

U.S. stocks have suffered from "bad breadth" in 2022, with the equal-weighted S&P 500 entering a correction.

Many S&P 500 stocks are falling to new lows, while a handful of megacaps buoy the cap-weighted index.

The 10 largest S&P 500 stocks are up 67% on average in 2022, while the other 490 are flat.

Even tech megacaps like Apple and Nvidia showed signs of strain with declines Tuesday.

Rising yields have driven the S&P 500's risk-adjusted returns to 20-year lows despite cheaper valuations.