Investors are on edge as the latest nonfarm payrolls report looms, with the options market signaling a potential 1.2% swing in the S&P 500, the largest implied move on a jobs day since September. Rising bond yields are adding to the market's unease, as they could delay the Federal Reserve's anticipated interest rate cuts until mid-year. This scenario is creating a challenging environment for traders, as the S&P 500 remains just 3% shy of its peak, and the persistent strength in job growth coupled with high inflation continues to fuel uncertainty about the Fed's monetary policy trajectory.
The ProShares UltraPro S&P 500 ETF (UPRO) experienced a slight decline, falling 0.67% to $89.00 at 10:40 AM on Wednesday, January 8.