Investor optimism surged as US stocks approached record highs, driven by President Donald Trump's announcement of a potential thaw in US-China trade relations. The news of Chinese President Xi Jinping reaching out to Trump has sparked hopes for reduced geopolitical tensions and compliance with trade demands, which could lead to enhanced corporate profits. This positive sentiment has encouraged investment in equities, pushing stock valuations higher. Despite the looming threat of a 10% levy on China, the possibility of resolving trade tensions favorably has bolstered investor confidence, contributing to the upward movement in the S&P 500 Index.
The ProShares Short S&P500 ETF (SH) experienced a slight decline, dropping 0.17% to $41.03 at 12:20 PM on Thursday, January 23.