The ProShares Ultra S&P500 ETF (SSO) is experiencing downward pressure as the S&P 500 faces a challenging start to 2025. Rising interest rates and the fading hype around generative AI are contributing to a deteriorating technical situation for the index. The December labor market report, anticipated later this week, is expected to be a significant test for the S&P 500, potentially pushing it into a correction. Additionally, the U.S. job market is showing signs of cooling, with job growth slowing and unemployment claims dropping, which could further impact investor sentiment.
The broader economic landscape is also influencing the S&P 500. Recent data indicates that U.S. job cuts have surged to a four-year high, and the trade deficit has widened, adding to the economic uncertainty. Despite these challenges, the labor market remains relatively resilient, with job openings exceeding the number of unemployed individuals. However, the strong economic data has led to higher bond yields, which in turn has pressured equity markets, including the S&P 500.
The SSO ETF is currently priced at $93.00, reflecting a 0.27% decrease from the previous close.