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 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, which suggests reduced concerns over economic overheating and potentially lower borrowing costs for businesses. Additionally, a weakening US dollar, as indicated by a 0.7% drop in the Bloomberg Dollar Spot Index, could enhance the competitiveness of US exports, adding to the market's positive momentum.
The Direxion Daily S&P 500 Bull 3X Shares (SPXL) experienced a rise, closing at $179.58, up 1.95% from the previous close of $176.15. As of 16:20 on Tuesday, February 4, the ETF is trading at $178.72, reflecting a slight decline of 0.48% since the market close.