Federal Reserve Governor Christopher Waller's dovish comments about potential rate cuts in the first half of 2025 have introduced uncertainty into the equity markets, leading to a downturn in the S&P 500. Investors are grappling with the implications of these potential monetary policy shifts on the economic outlook. Meanwhile, bond prices have risen, reflecting their increased attractiveness amid the prospect of lower future interest rates. The broader market is also influenced by a strong dollar, supported by Treasury Secretary nominee Scott Bessent's commitment to maintaining its status as the world’s reserve currency. Rising import prices and persistent inflationary pressures further complicate the economic landscape, prompting investors to seek safe-haven assets like gold.
The Invesco S&P 500 Equal Weight ETF (RSP) closed at $179.17, up 0.79% from its previous close of $177.77, as of 16:20 on Thursday, January 16.