S&P 500 Equal-Weight ETF Up 0.5% While SPY Drops 1.1% Amid Mega-Cap Tech Declines Ahead of April Options Expiration

The S&P 500 index has experienced a notable divergence between its traditional market-cap weighted version and its equal-weight counterpart in recent trading sessions. While the S&P 500 ETF Trust ($SPY) opened down approximately 85 basis points and continued to decline by around 1.1%, the equal-weight S&P 500 ETF ($RSP) showed relative resilience, fluctuating near flat or slightly positive territory, with gains up to 0.5% reported. This divergence highlights that the broader market breadth remains relatively stable, as the weakness in the market is primarily driven by declines in mega-cap and growth stocks, often referred to as the 'Mag 7' group. Supporting this, the Mag 7 ETF ($MAGS) declined by 30 basis points, contrasting with the $RSP's 60 basis points gain. Market volume ratios and TICK readings have been strong, suggesting positive momentum at the start of trading days, although volatility is expected during the April options expiration period, which historically tends to be higher in 19 of the last 28 years. Overall, the data indicate that while large-cap technology and growth stocks are exerting downward pressure, the broader market remains relatively steady as reflected by the equal-weight index performance.