The tech sector's tentative rebound, led by Apple's reassuring guidance, has provided a modest lift to the S&P 500, despite ongoing challenges such as declining iPhone sales and geopolitical uncertainties. Broader market sentiment remains cautious, with investors increasingly turning to European equities and value stocks 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, highlighting a move towards broader market opportunities. The S&P 500's rise is also supported by a cautious optimism, as it nears its 52-week high, driven by Apple's influence.
The Direxion Daily S&P 500 Bull 3X Shares (SPXL) has responded positively to these developments, climbing 2.11% to $186.90 as of 10:40 AM on Friday, January 31.