The announcement of a one-month delay in US tariffs against Mexico by President Claudia Sheinbaum has shifted investor focus towards potential trade resolutions with Canada, encouraging a reallocation of funds into equities. This development is perceived as a positive step towards reducing trade tensions, which could enhance corporate profits and stimulate economic growth. Despite the optimism, the S&P 500 Index has experienced a slight decline, reflecting cautious investor sentiment as they await further trade news. The dip in the index suggests that while the market remains hopeful, there is still some uncertainty regarding the outcome of trade negotiations.
The ProShares Short S&P500 ETF (SH) has seen a modest increase, rising 0.75% to $41.80 as of 12:20 PM on Monday, February 3.