Investors are closely monitoring the upcoming consumer price index (CPI) data, which is anticipated to shed light on inflation trends. The S&P 500 has rebounded from its earlier losses, trading above its 100-day moving average, as market participants brace for potentially significant CPI results. The recent cooling of the producer price index (PPI) in December, attributed to lower food costs and stable service prices, has alleviated some inflationary concerns. However, mixed signals from PPI components that impact the Fed's preferred inflation measure, the personal consumption expenditures (PCE) gauge, have left the inflation outlook uncertain. This uncertainty is reflected in the cautious optimism seen in the broader market.
The ProShares Short S&P500 ETF (SH) experienced a slight decline, closing at $42.72, down 0.19% from its previous close of $42.80, as of 16:20 on Tuesday, January 14.