The stock market is facing a challenging start to 2025, with higher real yields beginning to exert downward pressure on prices. This shift is cooling off some of the previously positive sentiment, although the fundamentals remain robust. Excess liquidity continues to support the market, and the risk of a near-term recession is low, which helps maintain the primary bull trend. However, uncertainties loom large, including potential geopolitical risks such as a tariff war, sticky inflation, and ongoing global volatility, all of which could threaten economic growth and lead to market corrections.
Despite these challenges, the S&P 500 Index is currently trading at 5,776.12 as of 09:41 on January 13, slightly below its last close of 5,827.04. The market opened at 5,782.02, with an intraday high of 5,784.05 and a low of 5,773.31, reflecting the cautious sentiment among investors amid the prevailing uncertainties.