Investor sentiment has been buoyed by President Claudia Sheinbaum's announcement of a one-month delay in US tariffs against Mexico, which has shifted attention to potential trade resolutions with Canada. This development has led to a reallocation of funds into equities, as investors anticipate that stocks could continue to rise if Canada follows suit. The delay in tariffs is perceived as a positive step towards easing trade tensions, potentially enhancing corporate profits and stimulating economic growth. Despite the optimism, the S&P 500 Index has seen a slight decline, reflecting cautious market sentiment as investors await further trade developments.
The SPDR Portfolio S&P 500 ETF (SPLG) experienced a decline, dropping 0.75% to $70.27 at 12:20 PM on Monday, February 3.