Investor optimism regarding potential progress in US-China trade talks has sparked a rally in the stock market, with significant contributions from big tech companies. Despite President Trump's indication of no immediate plans to engage with China's President Xi, traders remain hopeful that negotiations could yield positive outcomes similar to those achieved with Canada and Mexico. This sentiment is further supported by a decline in 10-year Treasury yields, suggesting reduced concerns over economic overheating and potentially lower borrowing costs for businesses. Additionally, a weakening US dollar could enhance the competitiveness of US exports, adding to the market's positive momentum.
The SPDR Portfolio S&P 500 ETF (SPLG) closed at $70.78, up 0.67% from the previous close of $70.31, and is currently trading at $70.68, reflecting a 0.53% increase as of 16:20 on Tuesday, February 4.