The Russell 2000 index, a benchmark for small-cap stocks in the United States, has entered correction territory, dropping 10% from its record closing high and is now 8.3% below its 2024 all-time high. The mean stock in the index has declined by 55.8%. This decline comes as the index faces challenges, including fading hopes for interest rate cuts and broader market weakness. Additionally, market breadth in the S&P 500 has deteriorated, with only 17% of its stocks trading above their 50-day moving average, marking the lowest level since November 2023. In December, only 17% of S&P 500 stocks outperformed the index, the lowest share since data tracking began 38 years ago. The number of sectors above their 200-day averages has also contracted to a one-year low. The concentration of gains in the S&P 500 is heavily reliant on the 'Magnificent Seven' tech stocks, which account for over 30% of the index's total market capitalization, raising concerns about stretched valuations and potential risks of a bubble. These developments highlight growing fragility in U.S. equity markets.