The recent review of the Economic and Trade Agreement with China by the US has introduced a layer of uncertainty in the stock market, particularly impacting the technology sector. This geopolitical development has led to a pause in the market's recent rally, as investors weigh the potential implications on trade relations. Additionally, President Donald Trump's mixed signals on economic policies, including possible tax cuts and a softer stance on tariffs, have further contributed to market volatility. In response, investors have shifted towards safer assets, leading to a rally in Treasury bonds and a decline in yields. The dollar has weakened, experiencing its worst week since November 2023, while oil prices have dropped following Trump's calls for OPEC to reduce prices.
The Invesco S&P 500 Equal Weight ETF (RSP) closed at $182.19, down 0.09% from its previous close of $182.35, as of 16:20 on Friday, January 24.