The S&P 500 is currently experiencing mixed signals from the latest economic data, with the manufacturing sector continuing to contract while the services sector shows robust growth. The Manufacturing PMI has dropped to 48.3, indicating ongoing challenges, whereas the Services PMI has surged to 58.5, its highest level since 2021. Despite the strong performance in services, employment growth remains modest, and there are concerns about potential labor market weakening. Disinflationary trends are also evident, with falling input and output prices in the services sector, suggesting that inflation may ease further. These mixed economic indicators have led to cautious sentiment among investors as they assess the broader economic outlook.
The ProShares UltraPro S&P 500 (UPRO) ETF has responded to these developments, rising 1.29% to $98.72 as of 12:00 PM on Monday, December 16.