The S&P 500 (SPX) is starting off the new year on the wrong foot with the index falling today. While the new year started yesterday, Thursday marks the first day of trading for U.S. stock markets due to yesterday being a federal holiday.
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Investors are tracking the S&P 500 today, hoping to gleam how it reacts to 2025. Unfortunately, the SPX is down 0.55% as of this writing. For the record, economists still expect positive movement from the index this year. Even if they don’t expect the market to increase as much as it did in 2024.
Part of that may be tied to Federal Reserve warnings that interest rate cuts could slow this year. Another factor worth considering is the strong gains the market has seen over the last two years. This means markets are already quite mature and aren’t likely to maintain as high of gains as seen in 2023 and 2024.
Stocks Hitting the S&P 500 Index Today
Turning to the TipRanks heatmap tool, traders can see which stocks are dragging the SPX lower today. There’s red all across the board, but most of today’s damage appears to be coming from tech stocks and Tesla (TSLA). That makes sense as China recently expanded its export ban on certain U.S. companies. President-elect Donald Trump also plans to add fuel to the trade war with China through increased tariffs. Additionally, TSLA missed its delivery estimates in its latest quarter.
How to Invest in the S&P 500
Traders can’t invest directly in the S&P 500 as it’s only an index. However, they can buy shares on the index to gain exposure. Those considering a long-term investment in tech stocks might use today’s weakness as an entry point.
Another option is investing in exchange-traded funds (ETFs) that track the S&P 500. That includes those betting on and against the index. One popular choice is the SPDR S&P 500 ETF Trust (SPY) but there are plenty to consider a stake in.
