ProShares Ultra S&P500

SSO

Market cap $6.77B

Nvidia Corporation sold off despite strong earnings, signaling potential market exhaustion and elevated downside risks for the S&P 500 and Mega Cap 7 stocks. Operation Epic Fury and macro headwinds—including yen carry trade unwind, weakening dollar, and high CAPE ratio—raise the probability of a significant market correction.

Even as the S&P 500 drifts sideways, strength in health care, industrial, and materials stocks suggests investors can still find opportunities beneath the surface.

The firm's flagship multistrategy Wellington fund rose 1.9% in February, bringing its year-to-date gain to 2.9%.

The US stock markets are negative in the premarket hours, as we are trying to price in a new war.

U.S. stock futures fell sharply on Monday following Friday's losses. Futures of the major benchmark indices were negative amid the ongoing Iran-U.S. conflict.

The S&P 500 remains range-bound, with February closing lower but lacking a decisive breakdown or reversal signal. The US-Israel attack on Iran is a major catalyst and could be a trigger for a break in the range.

I use junk bond yields as a leading signal to gauge equity market risk. Their sensitivity to investor risk appetite complements traditional indicators like P/E ratios.

The S&P 500 Index slipped 1% in February, but SMID-caps and international equities delivered strong positive returns, highlighting the value of diversification. Bond markets rallied with AGG up nearly 2% as Treasury yields fell to multi-month lows, while high-yield spreads widened on private credit concerns.

CNBC's Morgan Brennan reports on markets rotating out of tech into broader sectors, with the S&P 500 Equal Weight Index at a record high as utilities, energy, and transports lead gains while communications and discretionary lag.

The AI trade has gotten stretched—and the market has plenty of other things to worry about.