Top catalysts moving the S&P 500 Index, SPY, and VOO ETFs today

The S&P 500 Index and its ETFs, like the SPY and VOO wavered today as market participants reacted to several important macro events from the United States and other countries. They have officially entered a bull market after rising by over 20% from the lowest point this year. Here are the top five things moving the index today.

S&P 500 Index reacting to strong US jobs report 

The S&P 500 Index and its ETFs is reacting moderately to the latest US private payrolls data by ADP. These numbers showed that the private sector created 122k jobs in May, higher than the expected 118k. 

The data came a day after a report by the Bureau of Labor Statistics (BLS) showed that the number of job vacancies jumped sharply in April this year. They rose to 7.618 million from the previous 6.88 million.

The next key macro data to watch will be the upcoming US non-farm payrolls (NFP) data. Economists polled by Reuters expect these numbers to show that the economy added over 90k jobs in May as the unemployment rate remained at 4.3%.

Private equity stocks slump amid renewed private credit weakness

The other key thing moving the S&P 500 Index today is the renewed concerns about the private credit industry. In a statement, Partners Group moved to restrict withdrawals from one of its funds. This restriction brought memories of Blue Owl Capital, the highly troubled private credit giant.

KKR shares dropped by over 6% in the pre-market session, bringing the 12-month weakness to 21%. Ares Management stock dropped by 6.25%, while Blue Owl fell by over 3%. Some of the top losers in the S&P 500 Index were Lamar Advertising, DoubleVerify, GitLab, and Carlyle. 

On the other hand, the top gainers in the index were Marvell Technology, GameStop, Intel, Post Holdings, and Ventas.

US-Iran quagmire continues

The S&P 500 Index is also reacting to the ongoing US-Iran quagmire. The two sides launched attacks overnight, driving crude oil prices up a bit, with Brent moving to $98. 

On Monday, Iran announced that it was exiting talks with the US, pushing President Trump to act. He called Israel’s Benjamin Netanyahu and pressed him to stop his bombardment of Lebanon. Analysts believe that Israel will continue fighting, as it tries to push the US and Iran back to war.

Renewed fighting, which Trump does not want, will be bearish for the stock market as it will make inflation stickier and push the Federal Reserve to hike interest rates later this year.

Trump unleashes new tariffs

The S&P 500 Index, VOO, and SPY ETFs are also reacting to news that the US was considering fresh tariffs on over 60 trading partners. The justification this time is the use of forced labor in these countries, which include Canada, Mexico, Taiwan, and the UK. 

China, Japan, India, and South Korea will be charged a 12.5%, a move that risks reigniting a trade war. In a statement, USTR Ambassador Jamierson Greer said:

“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”

The statement came after the US removed tariffs on key items like steel and aluminium to lower costs ahead of midterms. These tariffs also come at a time when the US is facing substantial inflation.