The S&P 500 faced downward pressure as investors processed dovish remarks from Federal Reserve Governor Christopher Waller, who hinted at potential rate cuts in the first half of 2025, contingent on favorable inflation data. This has injected uncertainty into the market, prompting a decline in equities as investors consider the broader economic implications of such monetary policy shifts. Concurrently, bond prices have risen, reflecting their increased appeal amid the prospect of lower future interest rates. The market's cautious stance is further influenced by a strong dollar, driven by Treasury Secretary nominee Scott Bessent's commitment to maintaining its global reserve currency status, and rising import prices, which signal ongoing inflationary pressures.
The Direxion Daily S&P 500 Bull 2X Shares (SPUU) experienced a slight decline, closing at $150.27, down 0.38% from the previous close of $150.85. As of 16:20 on Thursday, January 16, the ETF is trading at $150.39, reflecting a 0.30% decrease from the prior close.