empty
09.06.2025 12:07 AM
The Market Realized That Money Isn't Everything

Which is stronger — money or power? The answer to this question became clear very quickly. In the conflict between the most influential president in the world, Donald Trump, and the wealthiest man in the world, Elon Musk, it was the Tesla owner who blinked first. His company's stock plunged 14% in a single day after the White House announced it would end all government contracts for the purchase of electric vehicles. This equates to $150 billion. At this rate, one could even imagine Musk slipping from the richest to the poorest person on the planet.

The market enthusiastically received the fact that the conflict was quickly resolved. Musk had every right to be dissatisfied with Trump's big and flashy bill, which eliminated the $7,500 tax credit for purchasing electric vehicles. As a result, Tesla will lose about $1.2 billion, a figure comparable to the company's annual profit.

Dynamics of Tesla and Other Magnificent Seven Companies

This image is no longer relevant

Along with the end of Donald Trump and Elon Musk's mutual criticism, the rally of the S&P 500 above the psychologically important 6000 mark was supported by the White House's announcement of a new round of U.S.-China trade talks scheduled for June 9 in London and the release of the U.S. labor market data for May.

Ahead of its release, investors were alarmed by weak U.S. economic reports, including data on business activity, private sector employment from ADP, and jobless claims. However, the increase in non-farm payrolls by 139,000 — more than Bloomberg experts had forecast — calmed traders' nerves. The worst did not happen, so investors could confidently return to their previous strategy of buying the S&P 500 dip.

This strategy continues to work like clockwork. Investors surveyed by MLIV Pulse are confident that the broad market index will reach 6500. The only difference in opinion was timing: 44% of respondents believe it will happen by the end of 2025, 26% predict the first half of 2026, 11% favor the second half of next year, and the rest expect 2027.

Dynamics of market expectations for the Fed rate

This image is no longer relevant

In response to the strong labor market data, Trump demanded that the Federal Reserve cut the federal funds rate by a full percentage point — from 4.5% to 3.5%. However, the futures market, on the contrary, reduced the expected scale of monetary easing to 42 basis points in 2025. Derivatives decreased the chances of monetary policy easing in September from 90% to 70%.

This image is no longer relevant

Although the U.S. economy isn't firing on all cylinders, it is far from breaking down. Combined with the de-escalation of trade conflicts and impressive corporate earnings, this has allowed the broad market index to soar by 20% from its April low.

Technically, on the daily chart, the S&P 500 continues the process of restoring its upward trend. Long positions opened from 5945 should be held and gradually increased. The future of the broad market index will depend on the test of the pivot level at 6060.

Recommended Stories

USD/JPY. El yen y la política: un lunes difícil para la moneda japonesa

Al inicio de la nueva semana de negociación, el par USD/JPY no puede determinar la dirección de su movimiento. Los traders no logran decidir cómo reaccionar ante las elecciones

Irina Manzenko 12:03 2025-07-21 UTC+2

La UE prepara un contraataque

Durante el fin de semana se supo que EE. UU. impondrá aranceles del 30% a todos los productos de la UE a partir del 1 de agosto de este

Jakub Novak 10:58 2025-07-14 UTC+2

Análisis del par GBP/USD. El 14 de julio. Tranquilidad, solo tranquilidad.

El par de divisas GBP/USD mostró una caída bastante significativa durante el viernes. En general, la libra esterlina ha estado cayendo durante 2 semanas, y este es un hecho

Paolo Greco 07:49 2025-07-14 UTC+2

Análisis del par EUR/USD. El 14 de julio. La posición de la Fed y Trump permanece sin cambios.

El par de divisas EUR/USD continuó el viernes con un movimiento descendente suave y débil. Como ya hemos mencionado muchas veces, el movimiento actual es una corrección en estado puro

Paolo Greco 07:49 2025-07-14 UTC+2

El oro volvió a subir

El precio del oro se estabilizó después de un fuerte aumento observado durante la sesión asiática de hoy. Los operadores siguen prestando mucha atención a las amenazas de imposición

Jakub Novak 10:31 2025-07-11 UTC+2

Análisis del par GBP/USD. El 9 de julio. ¿Qué implica la "Ley maravillosa" de Trump?

El par de divisas GBP/USD durante el martes volvió a moverse a la baja, lo cual sigue causando cada vez más sorpresa. Por supuesto, ya hemos dicho en múltiples ocasiones

Paolo Greco 05:22 2025-07-09 UTC+2

Análisis del par EUR/USD. El 9 de julio. ¿Qué juego está jugando Trump con los aranceles?

El par de divisas EUR/USD durante el martes mantuvo un ánimo de corrección. No hubo eventos macroeconómicos en este día, sin embargo, Donald Trump "leyó toda la lista" de países

Paolo Greco 05:22 2025-07-09 UTC+2

Análisis del par GBP/USD. El 8 de julio. Nadie necesita más el dólar, Trump está indignado.

El par de divisas GBP/USD durante el lunes descendió ligeramente, pero todavía no se puede hablar de una tendencia bajista. Desde el punto de vista técnico, el par permanece

Paolo Greco 07:54 2025-07-08 UTC+2

Análisis del par EUR/USD. El 8 de julio. Elegante. Donald Trump prolongó los plazos del "período de gracia".

El par de divisas EUR/USD se negoció durante el lunes con una inclinación bajista, aunque probablemente no hubo motivos de peso para el fortalecimiento del dólar. Recordemos que durante

Paolo Greco 07:54 2025-07-08 UTC+2

Análisis del par GBP/USD. El 7 de julio. El mercado vuelve a posponer sus expectativas sobre el recorte de tasas de la Fed.

El par de divisas GBP/USD también se mantuvo en el mismo lugar durante el viernes, ya que en ese día la sesión comercial estadounidense, en esencia, no funcionaba. No hubo

Paolo Greco 07:26 2025-07-07 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
 

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 InstaTrade anyway.

We are sorry for any inconvenience caused by this message.