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, negatively impacting bond prices and exerting 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 at all. The increase in yields has particularly affected interest-sensitive sectors, contributing to the broader market's downturn.
The MAX S&P 500 4X Leveraged ETN (SPYU) experienced a significant decline, dropping 6.45% to $44.35 at 16:20 on Friday, January 10.