Investors are showing cautious optimism as they anticipate the upcoming consumer price index (CPI) data, which is expected 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 on what could be the busiest CPI day since March 2023. 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.
The ProShares Ultra S&P500 ETF (SSO) experienced a modest increase, rising 0.54% to $91.33 as of 16:20 on Tuesday, January 14.