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. Meanwhile, Nvidia's upcoming meeting with former President Trump adds a layer of uncertainty, contributing to the mixed sentiment in the tech sector.
The ProShares UltraPro S&P 500 (UPRO) ETF has responded positively to these developments, rising 2.13% to $98.25 as of 10:40 AM on Friday, January 31.