Stock Market Muted Following Moody's Downgrades, Ahead Of Critical Inflation Report: If Volatility Spikes, This Fund Offers Leverage
Portfolio Pulse from Melanie Schaffer
Ahead of the release of key July inflation data, the SPDR S&P 500 (NYSE:SPY) traded mostly flat. This follows volatile price action on Tuesday due to Moody’s downgrading 10 U.S. small and mid-sized banks. The upcoming U.S. consumer price index (CPI) data will be crucial for the market, potentially influencing the Federal Reserve's decision on interest rate hikes. If CPI data is higher than expected, market volatility may increase, and traders may choose to leverage this through the Convexity Daily 1.5x SPIKES Futures ETF (NYSE:SPKY).
August 09, 2023 | 2:48 pm
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NEUTRAL IMPACT
SPY traded mostly flat ahead of key inflation data. The ETF could be impacted by the upcoming CPI data and the Federal Reserve's decision on interest rate hikes.
The SPY ETF is directly impacted by the overall market sentiment and macroeconomic indicators such as the CPI data. If the CPI data is higher than expected, it could lead to increased market volatility, potentially affecting the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SPKY, a 1.5x leveraged fund, could benefit from increased market volatility if the CPI data comes in higher than expected.
SPKY is a leveraged fund that could benefit from increased market volatility. If the CPI data is higher than expected, it could lead to increased market volatility, potentially benefiting the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70