Investors are showing cautious optimism as they await the release of the consumer price index (CPI) data, which is anticipated to shed light on inflation trends. The S&P 500 has rebounded from its morning losses, trading above its 100-day moving average, as options traders brace for potentially significant market movements. 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 broader market, where a declining dollar has spurred demand for dollar-denominated assets, while crude oil prices have dipped, possibly due to weakening demand or increased supply.
The Direxion Daily S&P 500 Bull 3X Shares (SPXL) experienced a rise, climbing 0.81% to $165.12 as of 16:20 on Tuesday, January 14.