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, anticipating that stocks could rise further if Canada follows suit. The delay in tariffs is perceived as a positive step towards reducing trade tensions, potentially enhancing corporate profits and stimulating 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 ProShares UltraPro S&P 500 ETF (UPRO) experienced a decline, dropping 2.32% to $92.38 at 12:20 PM on Monday, February 3.