S&P 500 ETF Up 0.5% YTD, Dips on Fed Pick Rate Cuts Speculation
SPDR S&P 500 ETF Trust gained just 0.5% year-to-date through Feb. 3, trailing the 25% rise in the iShares MSCI South Korea ETF. Shares dipped following President Trump’s nomination of Kevin Warsh as a Fed Chair candidate, as markets priced in the possibility of four to five rate cuts.
1. SPDR S&P 500 ETF Trust Shows Modest Gains in Early 2026
The SPDR S&P 500 ETF Trust has delivered a year-to-date gain of just 0.5% through February 3, markedly lagging behind the 25% increase posted by a leading international country ETF over the same period. This performance comes after U.S. equities generated a marginal return in the face of robust rallies elsewhere, driven by surging demand for artificial intelligence infrastructure. Investors in the ETF have been weighing modest domestic GDP growth projections and corporate earnings forecasts against rapidly rising valuations in global markets. The disparity underscores questions about the resilience of U.S. equities to continued rate policy uncertainty, with market participants closely monitoring Federal Reserve communications for indications of any shift from its current stance.