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 closed green for a fifth consecutive week, marking its longest run since 2024. Impressive corporate earnings among index constituents have pushed down the forward price-to-earnings ratio and made many stocks look undervalued on a fundamental basis, sparking a fresh wave of buying, including flows from overseas as the US market outperforms European and Asian peers.
S&P 500 companies beating and missing estimates
While roughly one in two of every three S&P 500 issuers have beaten Wall Street estimates, the share of companies missing fundamentals is at its lowest level since 2021. That improvement is not driven solely by blockbuster results from Big Tech: Seaport Research Partners finds that issuers outside the IT sector have produced the largest positive surprises since Q4 2024.
The Magnificent Seven's reaction to earnings has been mixed. Alphabet's report produced a record one-day market-cap gain for the company. By contrast, investor disappointment at Meta Platforms sent its shares tumbling, creating a $566 billion gap in market capitalization among the group.
Magnificent Seven's reaction to earnings
High profits and discounted fundamental valuations are not the only drivers of the S&P 500's run to record highs. Oil has eased on reports that Iran made a new proposal to the US to unblock the Strait of Hormuz, and President Donald Trump has launched "Project Freedom," which is said to help commercial vessels find the safest transit routes through the world's key oil artery.
De-escalation in the Middle East would be an obvious positive for US equities, while escalation would hit the S&P 500.
US economic reports are also delivering pleasant surprises. After GDP expanded 2% in Q1, the manufacturing activity index — anchored near its 2022 highs — signals that the US economy is in decent shape.
Nevertheless, Goldman Sachs issues a warning for US equities. Its research shows hedge funds and trading advisors have begun to reduce net purchases. Coupled with stretched bullish positioning in the S&P 500, that raises the odds of a pullback. The bank believes the market will let off steam in the near term, shedding some of the froth accumulated during the rally to record highs.
Technically, the daily S&P 500 chart could be forming a reversal pattern centered on a bar with a long upper shadow. Closing the gap with a drop below 7,220 would provide a basis for initiating short-term short positions.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.
