The S&P 500 faced downward pressure as investors digested 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 reassessment of the economic outlook and leading to a decline in equity markets. 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 ProShares UltraPro S&P 500 ETF (UPRO) saw a decline, closing at $90.53, down 0.59% from the previous close, and further slipping to $90.10, marking a 1.07% decrease as of 16:20 on Thursday, January 16.