S&P 500 ETFs like VOO led April inflows despite market turbulence and economic slowdown fears.
The Labor Department reported that unemployment claims are rising, and investors bet this means interest cuts are coming soon.
Consumer spending is slowing and it pushed US GDP into negative territory in Q1. Earnings results continue to be mixed, with Booking Holdings beating expectations last night but Caterpillar missing this morning.
The market's recent downturn has tested even the most steadfast investors. With the Vanguard S&P 500 ETF (VOO 0.64%) -- an exchange-traded fund (ETF) that tracks the performance of the benchmark S&P 500 -- down nearly 7% (at the time of this writing) in 2025 amid escalating trade tensions, many investors are questioning their core holdings.
The Vanguard S&P 500 ETF fell due to inflation fears related to tariffs but has a potential upside as the effects of demand destruction may be underestimated. This is supported by applying Consumer psychology to the tariff situation, suggesting that discretionary spending, which is also more price sensitive, will decline. In this case, higher import taxes could have less drag on earnings, potentially benefiting VOO's holdings and potentially raising the ETF's P/E ratio.
Since hitting a peak in January, the S&P 500 index has traded down, and is currently 14% off that record (as of April 22). President Donald Trump's economic policies, particularly around trade and tariffs, are causing a lot of uncertainty.
With more than 4,000 ETFs, it is easy to get lost in the tickers. Last week's ETF.com awards program even had a category for best new ticker.
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The S&P 500 index (^GSPC 0.74%) is made up of 500 companies from 11 different sectors of the economy, so it's the most diversified of the major U.S. stock market indexes. It's currently down 12.5% from its record high, placing it firmly in correction territory, amid simmering global trade tensions that were sparked by President Trump's "Liberation Day" on April 2.
Major market indices are surging for a second straight day on positive political news.
There's no getting around the fact that most stocks have reacted strongly to President Trump's recent tariff announcements. The volatility in the market in early April caused some massive price swings from the S&P 500, including a 9.5% surge in one day after the previous four trading sessions brought it down by 12%.
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