The unexpected strength of the US economy, underscored by a surprising payrolls report, has shifted market expectations regarding Federal Reserve rate cuts. This robust labor market data has led to a rise in Treasury yields, negatively impacting bond prices and exerting pressure on equities, including growth stocks. The S&P 500 Index, which reflects these dynamics, has seen a decline as investors reassess their positions in light of the changing economic landscape. The increase in yields has particularly affected interest-sensitive sectors, contributing to the broader market's downturn.
The SPDR Portfolio S&P 500 Growth ETF (SPYG) experienced a decline, dropping 1.35% to $87.56 at 16:20 on Friday, January 10.