The announcement of a delayed tariff deadline by President Donald Trump has injected optimism into the financial markets, as traders view it as a potential step towards easing trade tensions with Canada and Mexico. This delay, now extended to March 1, has alleviated immediate concerns over inflationary pressures that could have resulted from the tariffs, thereby reducing expectations of rising interest rates. The positive sentiment has extended to the equity markets, with stocks rallying on the news. The delay is perceived as a conciliatory gesture, signaling a less aggressive stance that reduces the risk of an economic slowdown and bolsters investor confidence.
The Invesco S&P 500 Equal Weight ETF (RSP) experienced a modest increase, rising 0.15% to $183.01 at 1:00 PM on Friday, January 31.