The tech sector's tentative rebound, led by Apple's reassuring guidance, is providing a lift to the S&P 500, despite ongoing concerns about broader market conditions. Apple's influence has helped offset declines in iPhone sales and challenges in China, contributing to the index's rise. However, uncertainty remains, particularly with Nvidia's upcoming meeting with former President Trump and the Nasdaq 100's struggles due to DeepSeek-related jitters. Investors are increasingly diversifying their portfolios, with European equities and value stocks gaining traction as safer alternatives to the overvalued big tech stocks. This shift is evident in the better performance of the equal-weighted S&P 500 compared to its cap-weighted counterpart, reflecting a move towards broader market opportunities.
The Direxion Daily S&P 500 Bull 2X Shares (SPUU) has responded positively to these developments, climbing 1.74% to $158.84 as of 10:40 AM on Friday, January 31.