The SPDR Portfolio S&P 500 ETF (SPLG) is experiencing upward momentum on January 15, 2025, driven by a combination of favorable economic data and strong earnings reports from major U.S. banks. The latest consumer price index (CPI) report revealed that core inflation rose by 3.2% in December, slightly below the 3.3% expected by economists. This unexpected slowdown in inflation has eased concerns about potential Federal Reserve rate hikes, providing a boost to market sentiment. Additionally, the fourth-quarter earnings season kicked off with several big banks, including Goldman Sachs and Wells Fargo, reporting results that exceeded expectations, further fueling investor optimism.
The broader market is also benefiting from these developments, with the S&P 500 index climbing 1.4% as of the latest trading session. The positive earnings reports from banks have led to a rally in financial stocks, while the easing inflation concerns have contributed to a decline in Treasury yields, supporting growth stocks. The combination of these factors has created a favorable environment for equities, with the S&P 500 futures rising 1.5% to 5,972, indicating strong investor confidence.
The SPLG ETF is currently trading at $69.62, reflecting a 1.67% increase from its previous close.