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!
A break for oil, but not for stocks. Brent closed at its lowest levels since the start of the Middle East war, yet that didn't stop the S&P 500 from falling. Tech stock sell-offs pulled the broad index into the red for a second day running. It seems the fragile de-escalation in the conflict is not providing very generous fuel for the US stock market.
Stock index dynamics
There are several reasons for investor concern. Manufacturing activity in the US has risen to its highest levels since 2021, which points to economic strength — but it also increases the Fed's confidence in the need to tighten monetary policy. The futures market assigns roughly a 70% probability to a rate hike in September. A strong economy is good news for corporate earnings, but bad for stock multiples.
Fears around artificial intelligence add more fuel to the fire. Some companies in the sector have begun cutting prices, and investors are growing increasingly worried about the scale of borrowing required to build data centers. The logic is simple: AI models are gradually becoming commoditized, and demand shifts toward the cheapest solutions. That raises concerns that the already huge infrastructure costs — chips, servers, electricity — may prove less remunerative than investors had hoped.
Expected tech spending dynamics
Wall Street is salivating over rising corporate profits, but there's a catch. Analysts expect S&P 500 earnings to grow about 20% for a second consecutive quarter, largely thanks to semiconductor manufacturers. However, a significant portion of that growth is an accounting timing effect. When NVIDIA sells chips, it recognizes the revenue and profit immediately, while its customers treat those purchases as capital expenditures and write them off over time through depreciation. The result is a classic mismatch: the seller books earnings now; the buyer pays over years.
Morgan Stanley calls the current period a "golden window where everything looks good," but the bank warns the picture could change soon. Once deferred costs begin to surface in the reports of hyperscalers (large cloud providers), the accounting magic may evaporate.
If de-escalation in the Middle East and falling oil prices cannot offset the Fed's hawkish stance and doubts about monetizing AI, the golden window could close much faster than S&P 500 bulls expect.
Technically, a 1-2-3 reversal pattern is forming on the S&P 500 daily chart. Its activation would occur if the pivot level at 7,305 is breached, which would allow traders to add to existing short positions. Conversely, a bounce off support would be a reason to return to buying the broad stock index.
*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।
