Investor sentiment has been buoyed by the prospect of improved US-China trade relations, following President Donald Trump's announcement of a positive outreach from Chinese President Xi Jinping. This development has reduced geopolitical risks and encouraged investment in equities, as the potential for reduced trade barriers could enhance corporate profits. The anticipation of a favorable resolution to trade tensions has driven stock valuations higher, with the S&P 500 Index testing all-time highs. Despite the looming threat of a 10% levy on China by February 1, the market remains optimistic about the potential for a trade agreement.
The ProShares Ultra S&P500 (SSO) ETF saw a modest increase, rising 0.31% to $98.89 as of 12:20 PM on Thursday, January 23.