The announcement of new tariffs set to take effect on February 1 has created a risk-off environment in the US equity markets, leading to a broad sell-off. Investors are particularly concerned about the potential impact on earnings due to increased costs, which has prompted a cautious stance. Growth stocks have managed to outperform value stocks, as they are perceived to have better long-term prospects despite the current volatility. The energy sector, heavily reliant on global trade, has been hit hard, contributing to the overall decline in market breadth. Additionally, small-cap stocks are underperforming their large-cap counterparts, as they are more vulnerable to cost pressures from tariffs.
The SPDR Portfolio S&P 500 Growth ETF (SPYG) closed at $90.20, down 0.50% from its previous close of $90.65, as of 16:20 on Friday, January 31.