The S&P 500's recent downturn is primarily driven by a pullback in major tech stocks, which has overshadowed the broader market's improving value proposition. Analysts have been revising their earnings growth forecasts upward, leading to a decrease in equity valuations, particularly for the equal-weighted S&P 500. This suggests that while the main index faces pressure, the underlying market fundamentals are strengthening. The equal-weighted S&P 500 has seen a decline for six consecutive sessions, reflecting a more balanced view of market valuation changes. Additionally, the VIX index has surged to its highest level in over a week, indicating increased investor uncertainty and heightened market volatility.
The ProShares Short S&P500 ETF (SH) experienced a modest increase, rising 0.39% to $41.67 at 12:40 PM on Monday, December 9.