The S&P 500 is showing resilience despite a persistent streak of negative breadth, maintaining a modest gain for December. This unusual performance is occurring in a market environment marked by high valuations and speculative investments, such as MicroStrategy's recent inclusion in the Nasdaq 100. Analysts are concerned about a potential market bubble, as speculative stocks continue to rise while the broader S&P 500 lags. The disconnect between asset prices and traditional valuation metrics raises questions about the sustainability of current market levels. The S&P 500's ability to hold its ground amid these dynamics suggests potential volatility, especially if the Federal Reserve's anticipated "hawkish cut" alters investor sentiment.
The iShares Core S&P 500 ETF (IVV) rose 0.46% to $610.01 at 10:40 AM on Monday, December 16.