Investors are grappling with the implications of strong US retail sales data, which could potentially disrupt the Federal Reserve's anticipated rate cut trajectory into 2025. The robust retail figures, buoyed by increased car sales and strong online shopping activity, indicate a resilient US economy. This economic strength may lead the Fed to reassess its monetary easing plans, especially in light of proposed inflationary import tariffs by the incoming administration, which could influence consumer prices and inflation expectations. The broader market remains cautious as traders evaluate these economic signals amidst global monetary policy shifts.
The ProShares UltraPro S&P 500 ETF (UPRO) experienced a decline, closing at $97.34, down 1.31% from the previous close of $98.63, and further slipping to $97.20 by 16:20 on Tuesday, December 17.