Weekly Drawdown Report: May 9, 2026
As of May 9, 2026, the average Drawdown Severity Scoreā¢ across our universe of 759 tracked assets has climbed to 5.4. This level indicates a market experiencing broad-based selling pressure, with more than 43% of all tracked stocks now sitting in the Red Zone.
Our data shows that the number of assets in the Red Zone, characterized by a severity score of 5.0 or higher, has reached 333. This represents 43.9% of the total market, a significant concentration of stocks facing severe or prolonged declines from their historical peaks.
Market Distribution and the Rising Red Zone
The current distribution of drawdown intensity reveals a market heavily weighted toward the extremes. While 333 assets reside in the Red Zone, only 227 assets, or 29.9%, remain in the Green Zone with a Drawdown Severity Scoreā¢ between 0 and 2.
The remaining 199 assets, representing 26.2% of our data set, are currently in the Yellow Zone. These stocks carry a severity score between 2 and 5, suggesting they are in the midst of moderate corrections or are beginning to stabilize after deeper pullbacks.
The average Drawdown Severity Scoreā¢ of 5.4 reflects the reality that the median stock is currently experiencing a drawdown profile more aggressive than a standard market pullback. We continue to monitor these levels as the balance between the Green and Red zones shifts.
Key Zone Migrations This Week
Several notable assets crossed critical risk thresholds during the week ending May 9, 2026. These migrations often signal a change in the underlying momentum of a stock's decline or recovery.
Yum! Brands, Inc. (YUM) migrated from the Green Zone to the Yellow Zone. With a current Drawdown Severity Scoreā¢ of 2.1, the stock is officially entering a phase of increased drawdown risk after a period of relative stability.
Conversely, Vanguard Consumer Staples ETF (VDC) moved from the Yellow Zone back into the Green Zone. Its current severity score of 2.0 suggests that the selling pressure has abated enough to return the asset to our lowest risk category.
Teradyne, Inc. (TER) saw a total reset in its drawdown profile, moving from the Yellow Zone to the Green Zone with a Drawdown Severity Scoreā¢ of 0.0. This indicates the asset has effectively cleared its recent drawdown hurdles.
On the riskier end of the spectrum, TeraWulf Inc. (WULF) crossed into the Red Zone this week. With a Drawdown Severity Scoreā¢ of 5.1, it now joins the 333 other assets facing high-severity drawdown conditions.
Other stocks remained entrenched in deep drawdowns despite the passage of time. Zillow Group, Inc. (Z) maintained its Red Zone status with a severity score of 13.4, while Zoetis Inc. (ZTS) remains deep in the Red Zone with a score of 16.3.
The Market's Most Extreme Drawdowns
The highest severity scores in our database represent stocks that have suffered massive capital destruction over long periods. These are not simple corrections: they are structural declines that have lasted years, and in some cases, decades.
Nano Dimension Ltd. (NNDM) currently carries the highest Drawdown Severity Scoreā¢ in our system at 19.6. The stock is down 98.2% from its peak, a decline that has persisted for 3,656 days.
American International Group, Inc. (AIG) follows closely with a Drawdown Severity Scoreā¢ of 18.9. Our data shows this drawdown has lasted 9,268 days, with the stock still 93.8% below its all-time high.
PayPal Holdings, Inc. (PYPL) remains a significant point of interest for fintech investors. It currently holds a severity score of 18.8 and is down 85.3% from its peak. This drawdown has now lasted 1,692 days without a full recovery.
EPAM Systems, Inc. (EPAM) and PG&E Corporation (PCG) round out the top five highest severity list. EPAM Systems, Inc. (EPAM) has a Drawdown Severity Scoreā¢ of 18.4, down 86.2% over 1,593 days. PG&E Corporation (PCG) carries a severity score of 18.3, sitting 77.2% below its highs after 3,112 days.
Drawdown Severity Scoreā¢
Down 98% over 3656 days. This level of decline is exceptionally rare in this asset's history.
19.56
Price
$1.58
All-Time High
$88.90
Drawdown
-98.2%
Duration
3656 days
Stocks Approaching the Red Zone Threshold
As of May 9, 2026, several prominent companies are sitting exactly at or just below the 5.0 Drawdown Severity Scoreā¢ threshold. This level serves as the boundary between a standard correction and a high-severity drawdown.
Intuitive Surgical, Inc. (ISRG) currently has a severity score of 5.0. It is down 26.3% from its peak, a decline that has lasted 415 days. Similarly, First Solar, Inc. (FSLR) sits at a severity score of 5.0, though its drawdown is 29.3% and has spanned a much longer 6,508 days.
InterDigital, Inc. (IDCC) and Autodesk, Inc. (ADSK) also carry a Drawdown Severity Scoreā¢ of 5.0. InterDigital, Inc. (IDCC) is down 29.5% over a relatively short 130 days, while Autodesk, Inc. (ADSK) is down 28.6% over 1,706 days.
Just below the threshold, we find ONEOK, Inc. (OKE), Ulta Beauty, Inc. (ULTA), and Booking Holdings Inc. (BKNG), all of which carry a Drawdown Severity Scoreā¢ of 4.9.
Ulta Beauty, Inc. (ULTA) is particularly notable for the speed of its decline. Its 26.2% drawdown has developed in only 57 days. In contrast, the 28.3% drawdown for Booking Holdings Inc. (BKNG) has developed over 297 days. Gen Digital Inc. (GEN) also sits at a 4.9 severity score, down 28.9% over 219 days.
Mega-Cap Context and High-Volume Laggards
The broader market health is often dictated by how the largest components handle their drawdowns. While many mega-cap names have avoided the extreme 18+ severity scores seen in stocks like PayPal Holdings, Inc. (PYPL), the rising average severity score of 5.4 indicates that pressure is broadening.
When stocks like Zillow Group, Inc. (Z) and Unity Software Inc. (U) remain stuck in the Red Zone with severity scores of 13.4 and 13.2 respectively, it weighs on the growth composites of the market. Unity Software Inc. (U) has seen no improvement in its zone status this week, remaining in the high-severity category alongside Upwork Inc. (UPWK), which also carries a score of 13.2.
The fact that 43.9% of our tracked universe is in the Red Zone suggests that the "average" experience for an equity investor right now involves managing at least one position with a Drawdown Severity Scoreā¢ above 5.0.
What to Watch for the Week of May 10
Heading into next week, our focus remains on the cluster of stocks sitting at the 4.9 and 5.0 severity levels. If Ulta Beauty, Inc. (ULTA) or Booking Holdings Inc. (BKNG) continue to see price erosion, they will likely cross firmly into the Red Zone.
We are also monitoring Wheaton Precious Metals Corp. (WPM), which maintained its Yellow Zone status this week with a Drawdown Severity Scoreā¢ of 2.7. As a precious metals royalty company, its movement often provides a different risk signal than the technology and consumer discretionary stocks that currently dominate the Red Zone.
Finally, we will track whether the average severity score of 5.4 begins to stabilize. A move toward 6.0 would indicate a further deterioration of the 759 assets we track, while a move back toward 5.0 would suggest the beginning of a broad-market recovery from these current drawdown levels.
Frequently Asked Questions
How far has market fallen from its all-time high?
The market is currently experiencing broad based selling pressure with 333 assets facing severe or prolonged declines from their historical peaks. Over 43% of all tracked stocks have fallen far enough to enter the Red Zone, which represents a significant concentration of deep pullbacks across the universe of 759 assets. This indicates that the median stock is currently seeing a decline more aggressive than a standard market pullback.
What is market's drawdown?
The average Drawdown Severity Score across the tracked universe is 5.4, placing the broader market in the Red Zone. This score of 5.4 means the market is experiencing significant selling pressure, as scores above 5.0 indicate severe drawdown intensity. Historically, this level reflects a market heavily weighted toward extreme declines rather than moderate corrections.
How long has market been in a drawdown?
As of May 9, 2026, the market has seen a significant shift where only 29.9% of assets remain in the stable Green Zone. The data shows a growing number of stocks migrating into deeper drawdown territory, such as Yum! Brands moving into the Yellow Zone with a score of 2.1. This trend suggests a period of sustained pressure where the balance between recovering assets and those in deep declines is shifting toward the latter.
Disclaimer: DrawdownAlerts provides historical data analysis, not financial advice. Past performance does not guarantee future results. Severity scores are analytical tools, not buy/sell signals. Always do your own research before making investment decisions.