SEC Cautions Direxion, ProShares, and Tidal, Delaying New Leveraged ETF Introductions
SEC Warning Letters: The US Securities and Exchange Commission has sent warning letters to major providers of leveraged exchange-traded funds (ETFs), halting the launch of products aimed at delivering two- or three-times-daily market returns until concerns are addressed.
Concerns Over Risk: The SEC expressed worries that these leveraged funds may exceed acceptable risk levels, prompting the agency to require fund managers to revise their strategies or withdraw their applications.
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SEC Warning Letters: The US Securities and Exchange Commission has sent warning letters to major providers of leveraged exchange-traded funds (ETFs), halting the launch of products aimed at delivering two- or three-times-daily market returns until concerns are addressed.
Concerns Over Risk: The SEC expressed worries that these leveraged funds may exceed acceptable risk levels, prompting the agency to require fund managers to revise their strategies or withdraw their applications.
Market Outlook: Wall Street has rebounded after a correction, but Cantor Fitzgerald maintains a bearish outlook due to expectations of a weak earnings season and deteriorating economic data in the coming months.
Current Market Performance: As of Friday, major indices are down for the year, with the Dow down 2.6%, S&P 500 down 5%, and Nasdaq Composite down 9.9%.
Trump's Tariff Threat: President Trump threatened a 200% tariff on all alcoholic imports from the EU in response to the EU's 50% tariff on U.S. whisky, escalating trade tensions between the two parties.
Impact on Markets: Trump's aggressive trade rhetoric has caused volatility in the stock market, with the S&P 500 index experiencing significant fluctuations amid concerns over the economic effects of these tariffs.

Ontario Suspends Electricity Export Surcharge: Ontario has decided to suspend its 25% surcharge on electricity exports to the U.S. following discussions about a renewed trade agreement, in response to U.S. President Trump's plans to double tariffs on Canadian steel and aluminum.
Market Reactions: The suspension led to a recovery in U.S. stocks, which had been experiencing a selloff due to uncertainties from the escalating trade war initiated by Trump.
Market Performance Overview: U.S. stock indices experienced significant declines, with the S&P 500 dropping -2.70% and the Nasdaq Composite plunging -4%, attributed to mixed economic data and uncertainties stemming from President Trump's comments on potential recession.
Investment Insights: Analysts suggest that the recent sell-off may represent a market correction rather than a bear market, indicating potential opportunities for investors in sectors like technology that maintain strong fundamentals despite the downturn.
Market Dynamics in 2025: Wall Street has seen gains in 2025, but market sentiment remains cautious due to concerns over inflation, tariffs, and geopolitical tensions, preventing a sustained rally.
Analyst Insights: Various analysts from Seeking Alpha express differing views on the market; some warn of overvaluation and suggest hedging strategies, while others see potential buying opportunities despite volatility.





