The stock market is grappling with higher real yields, which are beginning to apply downward pressure on prices, dampening some of the previously positive sentiment. Despite robust fundamentals and excess liquidity that continue to support the market, uncertainties such as potential geopolitical risks, sticky inflation, and global volatility are casting a shadow over economic growth prospects. These factors are contributing to a cautious sentiment among investors, as evidenced by the S&P 500 Index's slight decline today. The index is trading below its previous close, reflecting the market's apprehension amid these prevailing uncertainties.
The Invesco S&P 500 Equal Weight ETF (RSP) has shown a modest increase, rising 0.12% to $173.46 as of 10:00 AM on Monday, January 13.