Woofun AI notes that Mott Capital Management founder Michael Kramer highlights severe divergence in US equity markets despite S&P 500 gains. The S&P 500 stock dispersion index has reached historically high levels, comparable only to the March 2020 pandemic crash and the April 2025 "Tariff Shock" period. This dispersion masks underlying instability, with tech stocks like Meta nearing 52-week lows while others surge.

Volatility metrics confirm this shift in risk. The Cboe Volatility Index (VIX) remains moderate at 17, whereas the VIXEQ, measuring individual stock volatility, has climbed to 46, a historical high. The spread between these indices is the widest since 2015, and the three-month implied correlation index has dropped below 10, indicating weak inter-stock correlations. Kramer identifies the semiconductor sector as particularly vulnerable, noting that the Cboe Semiconductor ETF volatility index is approximately double that of the Russell 2000 and Nasdaq 100, and more than three times that of the S&P 500. Since late March 2026, Micron and AMD shares have more than doubled, driven by rising AI spending expectations and record options activity.