The stock market is grappling with higher real yields, which are beginning to weigh on prices and dampen some of the earlier optimism. 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, uncertainties such as potential geopolitical risks, persistent inflation, and global volatility are causing investor caution. These factors are contributing to a more cautious sentiment, as evidenced by the S&P 500's current trading levels, which are slightly below its previous close.
The ProShares UltraPro S&P 500 ETF (UPRO) has experienced a decline, dropping 1.42% to $84.48 as of 10:00 AM on Monday, January 13.