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 spilled over into the equity markets, with stocks rallying on the news. The S&P 500 Index has seen gains as the delay is perceived as a conciliatory move, reducing the risk of an economic slowdown and bolstering investor confidence.
The Direxion Daily S&P 500 Bull 2X Shares (SPUU) has responded positively, climbing 1.57% to $158.57 as of 1:00 PM on Friday, January 31.