The SPDR S&P 500 was in need of a pullback after a massive 11 percent rally between Oct. 4 and Nov. 22 brought the ETF to a new all-time high of $473.54. The decline began to take place as mostly sideways consolidation on Nov. 23 and Nov. 24, but on Nov. 26 news of a new COVID-19 variant, omicron, dropped the SPY over 2 percent off the previous day’s close.
The SPY then began to recover on Monday, rallying 1.1 percent but on Tuesday Federal Reserve chairman Jerome Powell spooked the markets while giving testimony in front of the US Senate’s banking committee. Powell spoke about the Fed’s plans to accelerate the tapering of monthly asset purchases and its uncertainty surrounding inflation.
