Federal Reserve Governor Christopher Waller's dovish comments have introduced uncertainty into the market, as he hinted at potential rate cuts in the first half of 2025 if inflation remains under control. This has led to a decline in equity markets, with investors reassessing the economic outlook and the implications of such monetary policy shifts. The broader market is also influenced by a strong dollar, driven by Treasury Secretary nominee Scott Bessent's commitment to maintaining its global reserve currency status. Rising import prices, which increased the y/y change to 2.2% in December, add to the inflationary pressures that could impact the Fed's future decisions. Meanwhile, bond prices have climbed, reflecting their increased attractiveness amid the prospect of lower future interest rates.
The ProShares Ultra S&P500 (SSO) ETF experienced a decline, dropping 0.69% to $93.70 as of 16:20 on Thursday, January 16.