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 their positions in light of the potential for fewer rate cuts than previously anticipated. The increase in yields has particularly impacted interest-sensitive sectors, contributing to the broader market's downturn. Despite these challenges, the strong economic backdrop continues to provide some support to US equities.
The ProShares UltraPro S&P 500 (UPRO) ETF experienced a significant decline, dropping 4.76% to $85.56 at 16:20 on Friday, January 10.