The majority of the stocks in the S&P 500 are already in correction territory as the sell-off on Wall Street continues to drag the benchmark closer to that key threshold.

As of Monday’s close, 366 S&P 500 components or 73% were trading 10% or more below their respective 52-week highs, which means they have already suffered a correction. A total of 203 components closed more than 20% below 52-week highs as of Monday, meaning they are in bear market territory.

The S&P 500 is in the red again Tuesday, sitting about 9% below its 52-week high reached on Feb. 19. The market decline accelerated in the past week as President Donald Trump’s aggressive tariffs stoke fears of slowing economic growth and even a recession.

Five out of 11 S&P 500 sectors are in correction territory – consumer discretionary, tech, communication services, materials and energy.

The biggest laggards in the S&P 500 include drug maker Moderna and the highly volatile artificial intelligence play Super Micro Computer, which have fallen 79% and 69% from their record highs, respectively.

First Solar, Intel, Enphase Energy, Dollar Tree, Estee Lauder and Tesla have all declined at least 50% from their recent peaks.

Billionaire investor Ron Baron is standing by Elon Musk’s Tesla even in the face of its dramatic sell-off. The stock plunged 15% on Monday, its biggest one-day loss since September 2020.

“I can’t believe how cheap they are, things that we look at,” Baron said on CNBC’s “Squawk Box” Tuesday. “I was thinking we would make four times over the next 10 years. I think we’re gonna make more than that now from these prices.”

The Baron Capital chair and CEO first invested $400 million in Tesla between 2014 and 2016, and that early bet has made him billions of dollars as the EV company gained mainstream acceptance. Tesla represented 12% of Baron’s entire portfolio across different funds at the end of 2024.

Tesla shares have been on a roiller coaster ride since Musk went to Washington, D.C. to take on a major role in the second Trump White House. Tesla just suffered a seventh straight week of losses, its longest weekly decline since debuting on the Nasdaq in 2010.

Baron Capital trimmed its Tesla position in the second quarter last year because the holding had gotten too big in its portfolio. Baron vowed that his personal Tesla shares would be the last he would touch when it comes to portfolio management.

“I’m the last in, I’ll be the last out. So I won’t sell a single share personally until I sell all the shares for clients, and that’s what I’ve done,” he said.

Musk admitted Monday he is running his businesses “with great difficulty,” as he took on the role of heading Trump’s advisory Department of Government Efficiency, which is engaged in a broad, controversial effort to reduce federal government spending and slash employee headcount at dozens of agencies.

“I would hope that he would be a little less visible, but he feels that this is the way he’s going to get things done,” Baron said of the 53-year-old Musk. “He is more charged up about his business now than he’s ever been.”

BEIJING — Mainland Chinese investors are piling into the Hong Kong stock market at record volumes as its tech-heavy Hang Seng Index trades around three-year highs.

Net mainland Chinese purchases of Hong Kong stocks hit a record 29.62 billion Hong Kong dollars ($3.81 billion) on Monday, according to the Wind Information database.

That was the most since the Hong Kong stock market launched its “connect” program with the mainland, allowing local investors easier access to a select number of stocks traded offshore. The Shanghai Connect launched in November 2014, while the Shenzhen Connect opened in December 2016.

The Hang Seng Index traded around 0.7% lower Tuesday morning following a sharp sell-off in U.S. stocks overnight on worries about the impact of tariffs on global growth.

Net buys via the Shanghai Connect reached nearly 18 billion HKD on Monday, while those from the Shenzhen Connect reached 11.63 billion HKD, the data showed.

Hong Kong-traded shares of Alibaba and Tencent, both of which are not traded in mainland China, saw the largest net purchases, according to Wind data.

China last week affirmed its pro-growth stance by emphasizing plans to support private sector tech innovation, and increasing its fiscal deficit to a rare 4% of gross domestic product — including an expanded consumer subsidies program.

Citi’s global macro strategy team on Monday upgraded its view on Chinese stocks — namely the Hang Seng China Enterprises Index — to overweight, while downgrading the U.S. to neutral.

“One key reason why we have not been focused on Chinese equities is tariff risk,” the analysts said.

“Abstracting from this issue, we believe the case for China tech was clear. A) DeepSeek proved that China tech is at the Western technological frontier (or beyond), despite the export controls. This was followed by the release of Tencent’s Hunyuan (an AI video generator) and Alibaba’s QwQ-32B,” they added.

“I would say largely it would still be Greater China, which means largely Hong Kong, China. The stocks are cheap and under-owned,” Raychaudhuri told CNBC’s “Street Signs Asia” on Tuesday.

“We have seen some degree of consumption boost in the form of what the policymakers have been doing since January. It is not yet to the full extent that the market would like to have but at least it is a departure from the trend of many years,” he continued.

“So, right on top of my list, it would still be Hong Kong, China, the internet stocks, the large internet platforms and also some of the consumption-related names, mostly in athleisure, the restaurant stocks and other travel and tourism-related names,” Raychaudhuri said.

— CNBC’s Sam Meredith and Anniek Bao contributed to this report.