S&P 500 Slides as Economic Data Worries Investors
The S&P 500 (SPX) was down Friday as the stock market reacted to the latest economic data and other controversies. One of the biggest reasons for the SPX fall is decreased consumer sentiment from the University of Michigan’s index. This dropped to 64.7, easily missing economists’ expectation of 67.5.
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Another blow to the S&P 500 comes from President Donald Trump threatening to introduce more tariffs. That’s unsettled the stock market as the President continues the ongoing trade war. Adding to this is a major drop for UnitedHealth (UNH) stock today on reports of a Department of Justice (DOJ) probe into the health insurance company.
All of this news has the S&P 500 down 0.64% as of this writing. Even so, the index is still up 4.01% year-to-date and has increased 20.26% over the past 52 weeks.
Which Stocks Are Hitting the SPX the Hardest Today?
Turning to the TipRanks SPX heatmap tool, traders will see which stocks are weighing on the index today. As mentioned above, UNH is a major drag on the S&P 500 with its 8.7% decrease, but it isn’t the only red traders will see today. Tesla (TSLA), Amazon (AMZN), Alphabet (GOOGL), Walmart (WMT), and Broadcom (AVGO) are all experiencing deep red drops on Friday.
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 of stocks listed on it. Bold traders could purchase falling stocks in hopes of a rebound while more conservative investors will likely stick with resilient stocks rising on Friday.
Another option available to traders is investing in an exchange-traded fund (ETF) that tracks the SPX. There are options for betting on and against the index, depending on traders’ perception of the market. One popular choice is the SPDR S&P 500 ETF Trust (SPY).