Investors are digesting the implications of strong US retail sales data, which could complicate the Federal Reserve's plans for further rate cuts into 2025. The robust retail performance, fueled by increased car purchases and solid online shopping, indicates a resilient US economy. This resilience may lead the Fed to reconsider the pace of its monetary easing, especially with the incoming administration's proposed inflationary import tariffs potentially affecting consumer prices and inflation expectations. The broader market sentiment remains cautious as traders weigh these economic indicators against the backdrop of global monetary policy shifts.
The ProShares Short S&P500 ETF (SH) experienced a modest increase, rising 0.53% to $41.87 at 16:20 on Tuesday, December 17.