The legend in the InstaSpot team!
Legend! You think that's bombastic rhetoric? But how should we call a man, who became the first Asian to win the junior world chess championship at 18 and who became the first Indian Grandmaster at 19? That was the start of a hard path to the World Champion title for Viswanathan Anand, the man who became a part of history of chess forever. Now one more legend in the InstaSpot team!
Borussia is one of the most titled football clubs in Germany, which has repeatedly proved to fans: the spirit of competition and leadership will certainly lead to success. Trade in the same way that sports professionals play the game: confidently and actively. Keep a "pass" from Borussia FC and be in the lead with InstaSpot!
Anyone planning to bet against the S&P 500 should consider the strength of the American economy and the ongoing enthusiasm surrounding artificial intelligence. The US has proven to be more resilient to tariffs than previously thought. The OECD has raised its GDP forecasts by 0.2 percentage points to 2% for 2025 and 1.7% for 2026. Enormous investments in artificial intelligence are boosting gross domestic product as well as stock price growth. Americans are becoming wealthier and continue to spend.
OECD Forecasts for US Economy and Other Countries
According to 22V Research, increased consumer spending and investments in AI technologies will support productivity and allow S&P 500 companies to generate profits. Strategas Asset Management estimates that profits will grow by 12.5% in the next 12 months. Despite a decline in consumer confidence, Americans are still spending money. This may be associated with the wealth effect; as the broad stock index rises, the average American feels more affluent.
To sell the S&P 500, one must be confident in two things: a significant cooling of the US economy in 2026 and a loss of faith in artificial intelligence. Doubts exist in both areas. The US is currently ranked 14th among the largest stock markets, both in national currencies and in dollar terms. The inefficiency of their stock indices gives grounds for reflection. Has the AI technology phenomenon, which became the main driver behind the rally from 2022 to 2024, run its course?
Regarding potential weakness in the US economy in 2026, optimists have a factor that could assist the Fed. The worse things get for the United States, the higher the likelihood of substantial monetary stimulus. However, the muted reaction of the S&P 500 to the outcomes of the recent FOMC meetings suggests a decreasing dependence of the stock market on the dynamics of the federal funds rate.
Dynamics of S&P 500 Sensitivity to FOMC Meetings
In reality, markets are driven by expectations. Therefore, the broad stock index often reacts not to a rate cut itself but to rumors about its future direction. For instance, the belief in Donald Trump appointing Kevin Hassett as the new chair of the Fed provides significant support to the S&P 500. Derivatives predict an interest rate cut of 100 basis points by the end of 2026.
Thus, even any weakness in the US economy does not guarantee a substantial pullback in the broad stock index. The theme of artificial intelligence will continue to be at the forefront of investors' attention.
Technically, on the daily chart of the S&P 500, two consecutive doji candlesticks have emerged, indicating uncertainty. A successful retest of fair value at 6,845 would allow for the buildup of previously established long positions. A failure by bulls would heighten consolidation risks.
*এখানে পোস্ট করা মার্কেট বিশ্লেষণ আপনার সচেতনতা বৃদ্ধির জন্য প্রদান করা হয়, ট্রেড করার নির্দেশনা প্রদানের জন্য প্রদান করা হয় না।
ইন্সটাফরেক্স বিশ্লেষণমূলক পর্যালোচনাগুলো আপনাকে মার্কেট প্রবণতা সম্পর্কে পুরোপুরি সচেতন করবে! ইন্সটাফরেক্সের একজন গ্রাহক হওয়ায়, দক্ষ ট্রেডিং এর জন্য আপনাকে অনেক সেবা বিনামূল্যে প্রদান করা হয়।
