Federal Reserve Chair Jerome Powell's recent comments on trade risks and economic projections have cast a shadow over the market, leading to a cautious response despite an anticipated rate cut. The S&P 500 Index has been under pressure, with small-cap stocks particularly affected due to their sensitivity to interest rates. The market's tepid reaction is further compounded by concerns over potential policy changes from the Trump administration, including tariffs, which introduce uncertainty and could lead to increased volatility. The recent surge led by Tesla and the Magnificent Seven is also experiencing a natural pullback, adding to the downward pressure on the index.
The MAX S&P 500 4X Leveraged ETN (SPYU) experienced a significant decline, dropping 10.34% to $47.71 at 16:00 on Wednesday, December 18.