The stock market's recent rally has hit a pause as investors grapple with geopolitical uncertainties stemming from the US review of its Economic and Trade Agreement with China. This review has particularly impacted the technology sector, which is highly sensitive to trade relations. President Donald Trump's mixed signals on economic policies, including potential 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, marking its worst week since November 2023, while oil prices have dropped following Trump's calls for OPEC to reduce prices.
The SPDR S&P 500 ETF (SPY) closed at $607.97, down 0.29% from its previous close of $609.75, and currently stands at $607.52 as of 16:20 on Friday, January 24.