The S&P 500 (SPX) is slipping slightly on Wednesday as the stock market prepares for the Federal Reserve to release the minutes from its December meeting. This meeting saw the central bank cut interest rates by 25 basis points. However, it did so while warning that interest rate cuts could slow in 2025. With the release of the minutes, investors and economists will gain insight into why that warning was issued.
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Additionally, markets are reacting to news that President-elect Donald Trump may announce an economic emergency when he takes office. Trump would do so through the International Economic Emergency Powers Act, allowing him to introduce wide tariffs to manage the country’s economy.
With today’s news comes a 0.19% drop for the SPX. The index is off to a slow start in 2025 and is only up 0.47% since the start of the year.
Stocks Weighing on the S&P 500 Today
Looking at the TipRanks SPX heatmap tool, traders can see which stocks are pulling the index down today. The communication services sector sticks out as an obvious red spot on the map and the technology sector also has a fair amount of stocks hitting the S&P 500 today.
How to Invest in the S&P 500
Investors can’t take a direct stake in the S&P 500 as it’s only an index. Instead, they might consider buying shares of a stock listed on the SPX. Any dips today might make solid entry points for traders expecting the stocks to bounce back.
Another option is investing in an exchange-traded fund (ETF) that tracks the S&P 500 index. Traders that do so can bet on or against the SPX. One popular option is the SPDR S&P 500 ETF Trust (SPY) but there are plenty of ETFs to choose from.
