Investor optimism regarding potential progress in US-China trade talks has sparked a rally in the stock market, with significant contributions from major tech companies. Despite President Donald Trump's lack of 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 Direxion Daily S&P 500 Bull 2X Shares (SPUU) experienced a rise, closing at $154.49, up 1.17% from the previous close of $152.71, and currently trading at $154.56 as of 16:20 on Tuesday, February 4.