🟢 UltraShort SmallCap600 ETF (SDD) is trading 2.2% up today as Fed hike pressures small caps

SDD is trading 2.2% up today as the S&P SmallCap 600 weakens under pressure from the Federal Reserve’s 25-basis-point rate hike.

• Stronger-than-expected August retail sales and elevated Treasury yields add pressure; higher borrowing costs typically weigh more heavily on small caps, supporting SDD’s daily -2x inverse exposure.
• Small caps faced elevated borrowing-cost and consumer-demand concerns after the S&P SmallCap 600 declined 0.53%.
• Major U.S. indexes are declining as the 10-year Treasury yield remains near 5% and oil prices stay elevated.