The S&P 500 (SPX) is slipping today following the results from the Federal Reserve’s Federal Open Market Committee (FOMC) meeting. That’s due to the central bank voting to keep interest rates at current levels, which range from 4.25% to 4.5%.
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The Fed isn’t cutting interest rates due to the strength of the U.S. economy. That includes steady and low unemployment rates, as well as a “solid” labor market. It also noted that inflation remains elevated, which is another reason why it isn’t in a rush to cut interest rates. That’s doubly true coming off of 2024 when the Fed cut interest rates by a full percentage point. What’s unclear is if it will cut rates at all this year.
While investors expected the Fed to leave interest rates unchanged, that doesn’t mean the stock market likes the news. This has the SPX down 0.79% as of this writing, eroding some of its 3.16% gain year-to-date.
Which Stocks Are Dragging the SPX Down Today?
Turning to the TipRanks heatmap tool, investors will see which stocks are hitting the S&P 500 today. Tech stocks are largely responsible for the SPX falling on Wednesday. That makes sense as many of them fit into the growth stock category. Nvidia (NVDA) is suffering particularly hard today with a 5.58% drop as of this writing.
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 listed on it. While tech stocks are down today, bank stocks are doing well. That makes sense as financial stocks thrive on high interest rates.
Another option is buying shares of an exchange-traded fund (ETF) that tracks the S&P 500, including those betting on or against it. One popular choice is the SPDR S&P 500 ETF Trust (SPY) but there are other ETFs available.
