The recent pause in the stock market rally can be attributed to geopolitical tensions, particularly the US review of the Economic and Trade Agreement with China, which has raised concerns about trade stability. This development has notably impacted the technology sector, which is highly sensitive to such geopolitical shifts. Additionally, President Donald Trump's mixed signals on economic policies, including potential tax cuts and a softer stance on tariffs, have added to market uncertainty. In response, investors have turned to safer assets, leading to a rally in Treasury bonds and a decline in yields. The dollar has weakened, marking its worst week since November 2023, as lower yields make US exports more competitive. Meanwhile, oil prices have dropped for the first time this year, influenced by Trump's calls for OPEC to reduce prices.
The iShares Core S&P 500 ETF (IVV) experienced a slight decline, closing at $610.75, down 0.32% from its previous close of $612.70.