**[Analysis: U.S. Stock Discrepancy at High Levels, Beware of Semiconductor Sector Correction Risks]** BlockBeats News, July 1 — Michael Kramer, founder of Mott Capital Management, stated that although the S&P 500 index continues to rise, the internal structure of the market is showing significant divergence, with potential risks accumulating particularly in the technology sector. The current standout feature of the market is the severe divergence in individual stock performance. For example, in the tech sector, Meta's stock price is near its 52-week low, while Micron Technology and AMD have surged significantly. This "one rises, another falls" discrepancy means that gains in a few stocks mask overall index volatility, making the market appear more stable than it actually is. The S&P 500 constituent stock dispersion index is currently at a high level, historically surpassed only during the March 2020 pandemic crash and the April 2025 "tariff shock." Volatility indicators also show similar signals. The Cboe Volatility Index (VIX) is currently around 17, within a relatively moderate range; however, the VIXEQ, which measures individual stock volatility, is near 46, a historical high. The gap between the two has widened to the most significant level since 2015, indicating that market risk has not disappeared but has shifted from the index level to the individual stock level. Meanwhile, the three-month implied correlation index is below 10, showing weak linkage between individual stocks. If a sudden event occurs, the market may quickly reprice risk. Kramer believes that sectors with the highest implied volatility will bear the brunt, with the semiconductor industry being particularly worth watching. Since late March 2026, the stock prices of Micron and AMD have more than doubled, driven by continuously upward revisions in AI-related spending expectations, rapid valuation expansion, and heightened options trading activity. The Cboe Semiconductor ETF Volatility Index is approximately twice that of the Russell 2000 Index and the Nasdaq 100 Index, and more than three times that of the S&P 500 Index, indicating that risks in this sector are significantly higher than the broader market. [Original Link]