The Vanguard S&P 500 ETF (NASDAQ:VOO) fell 0.7% to $543.62 Tuesday as investors digested economic data and rising inflationary pressures.
What Happened: December’s Purchasing Managers' Index (PMI) for U.S. services climbed to 54.1%, signaling a robust end to 2024. While this underscored resilience in the services sector, a surge in price pressures and looming tariff concerns spooked markets.
The PMI's Prices Index jumped to 64.4%, its highest since mid-2023, reigniting fears of persistent inflation. Businesses reported rising input costs, labor constraints, and uncertainty over impending tariffs from the Trump administration.
This inflationary backdrop sent Treasury yields soaring, with the 30-year yield reaching 4.90%, its highest in two months, dragging equities lower. Despite optimism over service-sector expansion, inflation risks and trade policy fears cast a shadow over the broader market Tuesday.
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According to data from Benzinga Pro, VOO has a 52-week high of $559.94 and a 52-week low of $430.41.
