The S&P 500 (SPX) fell hard on Friday following the release of the December Jobs Report. This report beat estimates with nonfarm payroll jobs increasing by 256,000. That was better than estimates, showing the job market remains strong.
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This means the Federal Reserve will likely stick with its plan to reduce interest rate cuts in 2025. That makes sense as inflation has remained steady lately, limiting the chance of a recession alongside a strong labor market.
However, that’s bad news for the stock market as investors hoped for more interest rate cuts this year. Without those, investor morale is falling today. This is weighing on the stock market with many shares dropping. As a result, the S&P 500 index is down 1.6% as of this writing.
Stocks Hitting the SPX Index Today
Turning to the TipRanks SPX heatmap tool, investors can see which stocks are dragging the index down today. The bigger question is which stocks aren’t pulling the S&P 500 lower. The heatmap is mostly red with only a few spots of green breaking up the devastating view. This provides perspective for how bad stocks recated to the December Jobs Report today.
How to Invest in the S&P 500
Traders can’t take a direct stake in the S&P 500 as it’s only an index. However, they can buy shares listed on it instead. This might not be a bad option today as the dip could make for a good entry point into several stocks.
Another option is investing in exchange-traded funds that track the SPX index, including those betting on or against it. SPDR S&P 500 ETF Trust (SPY) is one of the more popular ones tracking the index but there are plenty to choose from.
