---
title: "SPY Dips 0.74% as Small-Cap ETFs Decline; Starbucks Falls 1.22% Amid Turnaround Efforts"
canonical_url: https://www.stockexpertai.com/journal/2026-01-02/spy-dips-074-as-small-cap-etfs-decline-starbucks-falls-122-amid-turnaround-efforts-4
last_updated: 2026-01-02T06:16:18.963Z
section: "Opinion Note"
author: "The StreetNews Editorial Board"
publisher: Stock Expert AI
tickers: SBUX, BTC, SFLO, IWN, IJS, AVUV, DFSV
content_type: journal-article
---

# SPY Dips 0.74% as Small-Cap ETFs Decline; Starbucks Falls 1.22% Amid Turnaround Efforts

_U.S. equities see a cautious start to 2026, with broad market and small-cap ETFs retreating, while Starbucks undergoes critical restructuring and Bitcoin shows mixed signals._

Here's our take on what matters most today. U.S. equity markets saw a broad retreat, with the SPY ETF closing down 0.74% at $681.92, reflecting a cautious start to the new year. Small-cap funds also experienced declines, with SFLO falling 0.72% to $29.49, AVUV down 0.90% to $101.98, and IJS dipping 0.91% to $113.72. These movements suggest investors are carefully re-evaluating positions as 2026 begins, following a period where smaller capitalization stocks have shown mixed performance. Other broad market indicators like DIA, QQQ, and IWM also saw declines, reinforcing a generally risk-off sentiment. 

This broader market weakness coincided with specific corporate developments and persistent questions in the cryptocurrency space. Starbucks (SBUX) shares declined 1.22% to $84.21, as the company enters a critical third stage of its turnaround strategy. This includes focusing on closing underperforming stores, potentially implementing layoffs, and even considering a divestment of its China business to address plummeting margins. While revenue growth shows improvement, the substantial cost associated with this growth and the ongoing restructuring efforts remain significant concerns for investors eyeing the coffee giant's long-term profitability.

Meanwhile

## Related Tickers
- [SBUX](https://www.stockexpertai.com/stock/sbux)
- [BTC](https://www.stockexpertai.com/stock/btc)
- [SFLO](https://www.stockexpertai.com/stock/sflo)
- [IWN](https://www.stockexpertai.com/stock/iwn)
- [IJS](https://www.stockexpertai.com/stock/ijs)
- [AVUV](https://www.stockexpertai.com/stock/avuv)
- [DFSV](https://www.stockexpertai.com/stock/dfsv)

## Frequently Asked Questions

### Why did the SPY ETF decline at the start of 2026?
The SPY ETF declined 0.74% reflecting a cautious start to 2026, alongside broad market and small-cap ETF retreats. This suggests investors are re-evaluating positions amid a generally risk-off sentiment in the new year.

### What is Starbucks' current turnaround strategy?
Starbucks is in its third stage of turnaround, focusing on closing underperforming stores, potential layoffs, and considering divesting its China business. These efforts aim to address plummeting margins and the substantial costs associated with recent revenue growth.

---
_AI-generated under human editorial supervision. Educational research, not financial advice._