The gains the S&P 500 made following Donald Trump’s win in the November 5 U.S. election have now completely vanished.
Recently, the index hovered around 5,844. To put that in perspective, on November 6, just the day after Trump secured victories in the crucial swing states, it had opened slightly higher at 5,864.
Both the S&P 500 and the Nasdaq Composite seem headed for their roughest week since September 6. It was then that fresh worries about the strength of the U.S. labor market made investors jittery. On the other hand, the Dow Jones is poised to register its most significant weekly percentage-point decline since March 2023.
So, what’s causing all this market turbulence? Rising Treasury yields are playing a part, alongside the Federal Reserve’s latest forecast regarding plans to lower interest rates come 2025. But honestly, hints that the market’s rally might be running out of steam have been popping up since early December.
