2/5

SSO Flat as Strong Earnings Season Boosts S&P 500

The ongoing fourth-quarter earnings season has been a boon for the S&P 500, with robust performances across key sectors such as Technology, Banks, and Health Care. According to a BofA Global Research report, U.S. investment-grade issuers have demonstrated a +14.2% y/y earnings growth, excluding the Energy and Finance sectors. This has been accompanied by earnings exceeding expectations by +5.5%, a significant improvement over the previous quarter's +2.5% surprise. These positive earnings surprises, coupled with a +0.9% revenue surprise, highlight the resilience of U.S. corporates in navigating a challenging economic environment.

The ProShares Ultra S&P500 ETF (SSO) reflected this optimism, closing at $97.61, up 0.78% for the day, and currently trading at $97.70, marking a 0.88% increase from the previous close as of 16:40 on Wednesday, February 5.