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Market Extra: Dow and S&P 500 haven’t been this disconnected since 2003

A pair of typically closely correlated equity benchmarks haven’t been seeing eye to eye, lately.

The Dow Jones Industrial Average DJIA, +0.44% and the S&P 500 index SPX, +0.64% the most popular stock-market gauges, usually move in lockstep, displaying what is known as a positive correlation. But in recent trade, the equity indicators have seen the lowest level of correlation since 2003, according to data from WSJ Market Data Group, tracking a 20-day rolling average of the benchmarks over the past 15 years (see chart below):

A reading of 0.00 describes no relationship between two assets, while 1.00 means assets are perfectly aligned, moving in the same direction at the same time.

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