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Why is SPY Up Today After Sector Rotation

The SPDR S&P 500 ETF (SPY) closed at $581.39 on January 13, 2025, up 0.16% as the S&P 500 Index managed to rebound from session lows amid rising demand for energy and healthcare stocks. The S&P 500 Index itself rose 0.16% to 5,836.22, driven by gains in non-tech sectors as investors rotated out of technology shares. The tech-heavy Nasdaq Composite slipped 0.38% to 19,088.10, pressured by rising Treasury yields, which hit a 14-month high at 4.79%, signaling inflation concerns and weighing on growth stocks. Energy stocks outperformed, buoyed by rising oil prices, while healthcare stocks gained momentum following a proposed increase in Medicare Advantage reimbursement rates. The market's focus is now on the upcoming fourth-quarter earnings season, with major banks set to report later this week, and key inflation data releases that could influence Federal Reserve policy expectations.