The S&P 500 faced pressure today 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 has injected uncertainty into the market, prompting a reassessment of the economic outlook and leading to a decline in equity markets. 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 heightened inflationary concerns.
The SPDR S&P 500 ETF (SPY) closed at $591.64, down 0.19% for the day, and further declined to $590.74, marking a 0.34% drop from the previous close of $592.78 as of 16:20 on Thursday, January 16.