S&P 500 Falls Below 3950 As Sell-Off Continues

As risk appetite declines, the S&P 500 declines

The S&P 500 is still under a lot of pressure due to concerns about the economy and Fed policies. It's interesting to note that while Treasury yields are declining, the stock market is not supported by lower yields.

Stock market mood has undoubtedly been harmed by the significant decline in the oil markets that has sent WTI crude below the $75 threshold. Unsurprisingly, the S&P 500's sell-off was driven by energy stocks. Today's largest energy loses included Marathon Oil, APA Corporation, and EOG Resources.

As news of increased pressure from the EU on the firm's targeted advertisements spread, Meta's stock price dropped by 6%. In today's trading session, other large-cap equities like Apple, Microsoft, Amazon, and Tesla also had declines of over 2%.

Overall, the S&P 500 is still declining following the significant surge. In advance of the Fed's final meeting of the year, which will happen the following week, this reversal appears normal. Although the decline in commodity prices appears to be negative for equities, investors should remember that bond dealers are less concerned about an aggressive Fed because Treasury yields are also falling.