Investors are grappling with the implications of strong US retail sales data, which could potentially disrupt the Federal Reserve's plans for further rate cuts into 2025. The robust retail performance, particularly in car sales and online shopping, indicates a resilient economy that might prompt the Fed to reassess its monetary easing strategy. This economic resilience, coupled with the proposed inflationary import tariffs by the incoming administration, is causing investors to tread cautiously. The broader market sentiment is also influenced by global monetary policy shifts, with Canada's inflation falling below target and the UK's focus on upcoming inflation figures. Meanwhile, the stability of the dollar and declining gold prices reflect mixed investor sentiment amid uncertainty about future Fed actions.
The ProShares Ultra S&P500 (SSO) ETF experienced a decline, dropping 0.99% to $98.24 as of 16:20 on Tuesday, December 17.