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 led to a reallocation of funds into equities, as investors anticipate that stocks could rise further if Canada follows suit. The delay in tariffs is perceived as a positive move towards easing trade tensions, potentially boosting corporate profits and stimulating economic growth. The SPDR S&P 500 ETF and e-mini S&P 500 futures have seen a surge in trading volumes, indicating strong investor confidence and liquidity in the market. High trading volumes are often seen as a precursor to sustained price movements, suggesting that the current rally in stock prices may continue with further positive trade news.
The Vanguard S&P 500 ETF (VOO) experienced a decline, dropping 0.70% to $549.44 at 12:20 PM on Monday, February 3.