The S&P 500 faced downward pressure as investors digested dovish remarks from Federal Reserve Governor Christopher Waller, who hinted at potential rate cuts in the first half of 2025, contingent on favorable inflation data. This uncertainty over future monetary policy has led to a cautious stance in equity markets, with investors contemplating the broader economic implications of such rate adjustments. Concurrently, bond prices have risen, reflecting their increased appeal amid the prospect of lower future interest rates. The market is also navigating a strong dollar, supported by Treasury Secretary nominee Scott Bessent's commitment to its global reserve currency status, and rising import prices, which have added to inflationary concerns.
The iShares Core S&P 500 ETF (IVV) closed at $594.62, down 0.17% from the previous close of $595.63, and further declined to $593.64, marking a 0.33% drop as of 16:20 on Thursday, January 16.