U.S. Stock Dispersion Hits Historic High; Semiconductor Sector Volatility at 3x S&P 500 Level

According to Mott Capital Management founder Michael Kramer, on July 1, individual stock dispersion in the S&P 500 reached historic highs, with the VIX-VIXEQ gap expanding to its widest level since 2015. The VIX stands at around 17, while the equity volatility index VIXEQ is near 46, both indicating divergence between index and single-stock volatility. Implied correlation among stocks has fallen below 10, suggesting weak linkages between individual names.

Micro-cap and semiconductor stocks present heightened risk. The Cboe Semiconductor ETF volatility index is approximately double that of the Russell 2000 and more than triple the S&P 500 level. Since late March 2026, Micron Technology and AMD shares have more than doubled amid elevated AI spending expectations and elevated options activity, according to Kramer.