The tech sector's tentative rebound, led by Apple's reassuring guidance, has provided a modest boost to the S&P 500, despite ongoing challenges such as declining iPhone sales and geopolitical uncertainties involving Nvidia. 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.
The ProShares Ultra S&P500 (SSO) ETF has responded positively to these developments, climbing 1.43% to $99.38 as of 10:40 AM on Friday, January 31.