The start of 2025 has been marked by higher real yields, which are beginning to weigh on stock prices, cooling off some of the optimism that characterized the market in late 2024. Despite robust fundamentals and excess liquidity that continue to support the market, investors are navigating a landscape filled with uncertainties. Potential geopolitical risks, sticky inflation, and global volatility are among the factors that could threaten economic growth and lead to market corrections. These concerns are reflected in the S&P 500 Index's performance, which has seen a slight decline as investors remain cautious amid these prevailing uncertainties.
The SPDR Portfolio S&P 500 Growth ETF (SPYG) experienced a decline, dropping 0.98% to $86.67 at 10:00 AM on Monday, January 13.