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From worst to first? These battered S&P 500 stocks bounce back
An equally weighted basket of the 25 worst-performing S&P 500 stocks fell an average 42.4% in the first half of the year and then gained 34.6% in the second half to date, according to Bespoke Investment Group data.
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What happened
An equally weighted basket of the 25 worst-performing S&P 500 stocks fell an average 42.4% in the first half of the year and then gained 34.6% in the second half to date, according to Bespoke Investment Group data.
Confirmed
Global impact / market context
A rebound in the year's worst performers shows investors are again willing to buy shares that dropped sharply, especially software companies feared to be made obsolete by artificial intelligence. That shifts money back toward beaten-down stocks and away from the safety of recent winners.
Analyst inference
The rebound is uneven: Accenture, Cognizant, Gartner, Workday and Palantir recovered strongly, while Insulet fell further. This suggests investors are sorting companies by whether AI threatens their revenue, rather than buying every fallen stock equally.
Analyst inference
What to watch
- Accenture rose 107.9% in the second half to date after dropping 53.6% in the first six months, among the biggest gainers in the basket. Confirmed
- Watch whether software companies feared to be made obsolete by artificial intelligence keep recovering, since Bespoke said the group mixed consumer stocks and software names. Proposed
- Watch Insulet, which fell another 2.7% in the second half after losing 46.4%, as a sign the rebound is not reaching every beaten-down stock. Analyst inference