Investor sentiment has been buoyed by President Claudia Sheinbaum's announcement of a one-month delay in US tariffs against Mexico, which has shifted the focus to potential trade resolutions with Canada. This development has encouraged investors to reallocate funds into equities, with the expectation that stocks could continue to rise if Canada follows suit. The delay in tariffs is seen 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 market sentiment as investors await further trade developments.
The SPDR S&P 500 ETF (SPY) saw a decrease in its price, falling 0.73% to $597.40 as of 12:20 PM on Monday, February 3.