Investor optimism regarding potential advancements in US-China trade discussions has sparked a rally in the stock market, with significant contributions from major tech companies. Despite President Trump's lack of immediate plans to engage with China's President Xi, traders remain hopeful that negotiations could yield positive results similar to those achieved with Canada and Mexico. This sentiment is further supported by a decline in 10-year Treasury yields, indicating reduced concerns over economic overheating and potentially lower borrowing costs for businesses. The broader market context includes a weakening US dollar, which could enhance the competitiveness of US exports, and a rebound in crude oil prices amid geopolitical tensions.
The ProShares Short S&P500 ETF (SH) experienced a slight decline, closing at $41.50, down 0.67% from its previous close of $41.78, and currently trading at $41.56 as of 16:20 on Tuesday, February 4.