The S&P 500 has shown resilience despite the underperformance of tech stocks, which have become the worst-performing sector in 2025. This sector rotation suggests investors are reallocating capital from tech to other areas, possibly seeking safer investments amid high volatility. The divergence between tech stocks and gold prices indicates a potential shift towards safer assets, with gold gaining appeal as a safe-haven. Despite these sector-specific challenges, the S&P 500 has maintained a positive return for the year, reflecting its ability to withstand market fluctuations and investor sentiment shifts.
The SPDR Portfolio S&P 500 ETF (SPLG) rose 0.71% to $70.81 as of 11:40 AM on Tuesday, February 4.