Investor sentiment has been buoyed by the announcement of a one-month delay in US tariffs against Mexico, with hopes that Canada might also engage in favorable trade negotiations. This development has led to a reallocation of funds into equities, as investors anticipate that reduced trade tensions could enhance corporate profits and stimulate economic growth. Despite the positive sentiment, the S&P 500 Index has experienced a slight decline, reflecting ongoing market volatility and the complex dynamics of international trade relations. The surge in trading volumes for the SPDR S&P 500 ETF and e-mini S&P 500 futures suggests strong investor confidence, although the market remains cautious as it awaits further trade developments.
The Direxion Daily S&P 500 Bull 2X Shares (SPUU) has seen a decline, dropping 1.38% to $152.43 as of 12:20 PM on Monday, February 3.