The Direxion Daily S&P 500 Bull 3X Shares (SPXL) closed down 0.21% at $168.37 on December 19, 2024, as the S&P 500 faced a significant sell-off following the Federal Reserve's hawkish stance on future interest rate cuts. The Fed's decision to limit rate cuts for 2025 has raised inflation concerns, leading to a stronger dollar and impacting market liquidity. This has resulted in a 2.95% drop in the S&P 500, as investors react to the Fed's outlook and the potential for higher rates. The market's reaction is compounded by the S&P 500's elevated valuation, trading at 21.5 times earnings estimates for next year, which is above its five-year average. Analysts suggest that the market correction, while sharp, is part of a broader pullback from overbought conditions earlier in December.