The S&P 500 (SPX) fell hard on Monday as the index suffered from an end-of-year selloff of many popular stocks. Chief among these are tech stocks, which are reeling today. This may be tied to the December Federal Reserve meeting and warnings of slowing interest rate cuts next year.
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Tech stocks fit into the growth stock category and growth stocks are strongly affected by interest rates. High interest rates are bad news for them while low interest rates are good. Considering the recent Fed warning, investors are likely offloading shares in fear of slow interest rate drops in 2025.
With all of this comes a major 1.15% drop for the SPX. Even so, the S&P 500 is still up 25.18% year-to-date.
What Stocks Are Hitting the S&P 500 Index Today?
Turning to the Tipranks heatmap tool, investors get a detailed look at the stocks pulling the S&P 500 down today. As mentioned above, tech stocks are largely harming the index on Monday. However, several other sectors are doing their own damage to the index. In fact, there’s not much green to be seen on the S&P 500 today. Only one industrial, as well as a few energy and consumer stocks, are positive.
How to Invest in the S&P 500 Index
Investors can’t take a direct stake in the S&P 500 as it’s only an index. Instead, one option they might consider is buying shares of companies listed on it. Considering today’s negative movement, traders might choose to buy some shares on the dip.
Another option is purchasing shares of an exchange-traded fund (ETF) that tracks the SPX. That includes ETFs that bet on and against the index. One popular choice tracking the index is the SPDR S&P 500 ETF Trust (SPY), but many options worth weighing are included in the chart below.
