The start of 2025 has been marked by higher real yields, which are beginning to weigh on stock prices, including those of the S&P 500. While the fundamentals of the market remain strong, with excess liquidity and a low risk of a near-term recession supporting the primary bull trend, investor sentiment is being tested by potential geopolitical risks, sticky inflation, and global volatility. These factors are contributing to a cautious market environment, as evidenced by the S&P 500's slight decline today. The index's performance reflects the broader uncertainties that could lead to market corrections despite the underlying economic strength.
The MAX S&P 500 4X Leveraged ETN (SPYU) has experienced a decline, dropping 1.91% to $43.59 as of 10:00 AM on Monday, January 13.