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 ongoing global volatility pose threats to economic growth and could lead to market corrections. These factors are contributing to a cautious sentiment among investors, as evidenced by the S&P 500 Index's performance today.
The SPDR S&P 500 ETF (SPY) experienced a decline, dropping 0.47% to $577.76 at 10:00 AM on Monday, January 13.