empty
24.04.2025 11:42 AM
Wall Street keeps White House in line

The market is showing heightened sensitivity to any good news, but its best days are behind it. The value of US equities as a percentage of the MSCI All Country World Index peaked in December. According to Jefferies Financial Group, investors should brace for further declines. A similar pattern occurred with Japanese equities in 1989, which was followed by sweeping global changes. Something similar may be in store for the US.

Although US equities account for 60-70% of the world's total market capitalization, America's economy does not generate a comparable share of global wealth. As a result, capital is flowing out of the US into other countries, a trend that has been accelerated by Donald Trump's protectionist policies. This phenomenon reflects not only American weakness but also investors' growing appetite for investing in Europe, Asia, and other regions.

Dynamics of US and other stock indices

This image is no longer relevant

Since Donald Trump took office, the S&P 500 has fallen by around 10%, marking the worst performance in the first 100 days of any US president. It is no surprise that the Republican is growing anxious and is now backtracking on earlier decisions. After imposing tariffs on America's "Liberation Day," a 90-day pause was announced. Following his criticism of Jerome Powell, Trump announced that he did not actually plan to fire the Fed chair.

It seems Donald Trump is still glued to the S&P 500, and the market holds power over him. During his first term as president, the Republican repeatedly equated rallies in the index with his own effectiveness. With the president's well-known fixation on the stock market, some players are trying to exploit it. First came news of a tariff pause, which was later confirmed. Now, investors are rattled by rumors that the US may unilaterally roll back tariffs against China.

Although the US administration has denied the reports, there is rarely smoke without fire. What worked once may work again. Nevertheless, some traders chose to lock in profits after several days of gains.

Dynamics of US stock indices

This image is no longer relevant

This image is no longer relevant

In this environment, the risk of medium-term consolidation in the S&P 500 is growing. Bulls are eager to buy the dip, yet they remain wary of fresh tariff threats and the risk of a recession. Bears seize on the adverse backdrop but retreat quickly on positive White House headlines. Buyers and sellers are engaged in a tug-of-war, which typically leads to the formation of trading ranges for specific financial market assets.

Technically, the daily chart shows that the S&P 500 tested the 5,400 level in an attempt to activate a 1-2-3 reversal pattern. However, the bulls' offensive was repelled, and the broad market index closed below this critical level. If the price breaks below the low of 5,350, it could become a signal to build short positions.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The Yen Has Lost Its Bullish Momentum

The Consumer Price Index (CPI) in the Tokyo region declined in June from 3.4% to 3.1% year-over-year, marking the first signal so far that may indicate a slowdown in price

Kuvat Raharjo 12:21 2025-06-27 UTC+2

EUR/JPY. Analysis and Forecast

The EUR/JPY pair is regaining positive momentum during today's trading session, reversing its recent decline.The euro continues to benefit from the prevailing sentiment of selling the U.S. dollar

Irina Yanina 12:17 2025-06-27 UTC+2

Inflation in Canada Remains Too High – USD/CAD May Accelerate Its Decline

Inflation in Canada remains too high to expect a rate cut by the Bank of Canada at its upcoming meeting. In April, inflation sharply slowed to 1.7% y/y, and most

Kuvat Raharjo 11:16 2025-06-27 UTC+2

XAU/USD. Analysis and Forecast

Gold is drawing renewed selling interest today after breaking below the key $3300 level. Traders are awaiting the release of the U.S. Personal Consumption Expenditures (PCE) Price Index, which

Irina Yanina 10:47 2025-06-27 UTC+2

PCE Index Data Unlikely to Significantly Impact Market Dynamics (Potential for Renewed Growth in EUR/USD and Bitcoin)

The easing of tensions in the markets, following a pause in the military conflict in the Middle East, supports the return of the previous paradigm—an increase in demand for stocks

Pati Gani 09:52 2025-06-27 UTC+2

The Market Is Off the Leash

Greed has returned to the markets. While professionals warn about the need for caution amid geopolitical uncertainty, trade wars, and the state of the U.S. economy, retail investors are once

Marek Petkovich 09:16 2025-06-27 UTC+2

What to Pay Attention to on June 27? A Breakdown of Fundamental Events for Beginners

There are relatively few macroeconomic reports scheduled for Friday. Some experts refer to the PCE indicator as "important" and "the Fed's favorite," but we do not share that view

Paolo Greco 07:02 2025-06-27 UTC+2

GBP/USD Overview – June 27: History Doesn't Repeat Itself

The GBP/USD currency pair continued its strong upward movement throughout Thursday. Since the beginning of the week, the U.S. dollar has lost "only" 330 pips. As we've previously stated

Paolo Greco 03:41 2025-06-27 UTC+2

EUR/USD Overview – June 27: Can Trump Balance the Trade Deficit?

The EUR/USD currency pair is in a "free rise" (similar to the term "free fall"). The dollar is once again plunging into the abyss, just as we repeatedly warned. It's

Paolo Greco 03:41 2025-06-27 UTC+2

Powell, Trump, and Everyone Else

What will change with the arrival of a new Federal Reserve Chair? This is a rather important question, and the answer to it may already have implications for the U.S

Chin Zhao 00:08 2025-06-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.