The unexpected strength of the US economy, underscored by a surprising payrolls report, has shifted market expectations regarding Federal Reserve rate cuts. This robust labor market data has led to a rise in Treasury yields, which in turn has exerted pressure on equities, including the S&P 500 Index. The index experienced a decline as investors reassessed the likelihood of multiple rate cuts this year, now considering only one cut plausible, if any. The increase in yields has particularly impacted interest-sensitive sectors, contributing to the broader market's downturn.
The Direxion Daily S&P 500 Bull 2X Shares (SPUU) reflected this market sentiment, closing at $144.91, down 3.26% from its previous close of $149.79, as of 16:20 on Friday, January 10.