The S&P 500 is experiencing a downturn as investors digest stronger-than-expected December jobs data, which has bolstered economic growth prospects but also raised concerns about potential interest rate hikes. This has led to a selloff in equities, particularly those with high valuations that are sensitive to interest rate changes. Despite the robust economic data, which supports corporate earnings and reduces immediate recession fears, the market remains cautious. Political factors, including potential fiscal policy adjustments by President Trump, are also influencing market sentiment, as traders weigh inflation risks against growth prospects.
The Direxion Daily S&P 500 Bull 3X Shares (SPXL) has seen a significant decline, dropping 4.34% to $163.55 as of 11:00 AM on Friday, January 10.