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!
The S&P 500 has successfully navigated the recent release of US inflation data, despite not capitalizing on the slowdown in consumer prices to 2.7% and the core index to 2.6%. Investors remain skeptical of the figures from the Bureau of Labor Statistics following the prolonged government shutdown. However, according to Wells Fargo, the disinflationary trend is ongoing, even if the latest statistics may exaggerate the extent of the CPI decline.
The US economy maintains a remarkable balance of resilience. It is not overheating enough to trigger rising inflation and provoke a tightening of the Federal Reserve's monetary policy. Consequently, a Goldilocks environment has been created for American stocks, allowing the S&P 500 to feel confident. Moreover, tensions surrounding geopolitical and trade risks are gradually easing. Investors are optimistic about an imminent peace in Eastern Europe and welcome the absence of escalations in tariff conflicts between the United States and China.
S&P 500 and Federal Funds Rate Dynamics
The S&P 500 is gaining strength from expectations surrounding the continuation of the Federal Reserve's monetary expansion cycle. Jerome Powell believes that the impact of tariffs on inflation will be relatively short-lived. Christopher Waller asserts that there will be no acceleration in prices in 2026, and John Williams, the president of the New York Fed, is encouraged by the muted effects of trade policy on inflation. The top officials of the FOMC are convinced that the labor market is the primary focus. It is no surprise that investors continue to anticipate a reduction in the federal funds rate.
When combined with positive forecasts for corporate profits and hopes surrounding artificial intelligence technology, this paints a bright future for the S&P 500. Optimists believe that there will be no bad news for the US stock market until year-end, as it has already weathered the test of American inflation. Thus, it is the perfect time to start thinking about the traditional Christmas rally.
S&P 500 and Moving Averages Dynamics
Despite the S&P 500's flirtation with the 50-day moving average, more than three-quarters of Bloomberg surveyed asset managers are positioning themselves for a more risky environment in 2026. Deutsche Bank, Morgan Stanley, and RBC Capital Markets are forecasting a rally of over 10% for the S&P 500 next year.
Certainly, risks have not evaporated. The economy could start to falter, and inflation may unexpectedly accelerate. A stagflationary environment would provide a compelling case for a significant retreat in stock markets. Concerns surrounding technology companies' abilities to generate adequate profits from their investments are also increasing. A rift may reemerge between China and the United States, while Russia's unwillingness to end the armed conflict in Ukraine could lead to a rise in geopolitical risks.
Technically, on the daily chart, bulls have found strength to push prices above the pivot level of 6,750, which acts as support. As long as prices remain above this level, it makes sense to focus on buying.
*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।
