The ongoing tech selloff, spurred by concerns over capital spending in AI, has led to a notable rotation into value stocks, which has benefited the equal-weighted S&P 500. This shift has been driven by the index's diversified sector exposure, particularly in industrials, utilities, and financials, allowing it to outperform its market-cap-weighted counterpart. As a result, the equal-weighted index has gained traction among investors seeking stability amid tech-driven market volatility. The S&P 500 Index itself has seen a decline, reflecting the broader market's response to these sectoral shifts.
The ProShares UltraPro S&P 500 (UPRO) experienced a significant drop, falling 4.90% to $93.05 by 11:00 AM on Monday, January 27.