empty
28.02.2025 09:49 AM
Stock market throws in towel

Trouble never comes alone. The S&P 500 plunged to its lowest levels since mid-January as Donald Trump reignited tariff threats. First, negative economic data from the US, then NVIDIA's earnings report that failed to impress investors, and finally, new import tariffs forced the bulls in US equities to throw in the towel. The fire was further fueled by Tesla's sell-off, with its shares returning to levels last seen during the November presidential elections.

Markets doubt that Elon Musk, who has now taken on the ambitious task of trimming the US government workforce, will have time to focus on his own company. Tesla's sales in Europe plummeted by 45% in January, serving as a catalyst for the stock's nosedive and dragging the S&P 500 down. Meanwhile, Donald Trump appears unlikely to throw a lifeline to the broad stock index.

The US president announced additional 10% tariffs on Chinese imports, sparking outrage in Beijing. Chinese officials have warned that if the US insists on its own course, China will have no choice but to defend its legitimate interests. According to a Harris poll for Bloomberg, 60% of Americans believe tariffs will accelerate inflation, while 44% think they will slow the economy.

US Imports from China, Mexico, and Canada

This image is no longer relevant

US equities face further pressure as Trump plans to introduce 25% tariffs on imports from Mexico and Canada starting in March. The close ties between US companies and their North American neighbors risk disrupting supply chains, increasing stagflation risks, and potentially triggering a recession. These concerns, combined with other bearish factors, have made individual investors the most pessimistic about the S&P 500's outlook in recent history. According to the American Association of Individual Investors (AAII) survey, the share of bearish sentiment surged from 40.5% to 61% in just one week, marking the highest level since September 2022.

Money continues to flee the US stock market, especially since alternative opportunities abound. Delays in tariffs have fueled rallies in European and Chinese stock indices. Meanwhile, the AI hype is no longer enough to sustain investor interest in US tech giants, given rising competition from abroad. Finally, as the S&P 500 tumbles, rising US Treasury prices provide an attractive domestic alternative for capital allocation.

US equity and bond yield trends

This image is no longer relevant

This image is no longer relevant

Capital flight is a major blow to the broad market index. There's hope that Trump's tariff threats won't materialize, but for now, investors are poised to play safe.

From a technical standpoint, the S&P 500 continues to develop a Broadening Wedge pattern on the daily chart. The short positions initiated at 6,083 and reinforced at 6,000 should be maintained, especially since the first of the two previously mentioned targets at 5,830 and 5,750 is now within reach.

Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

Los mercados atrapados en un círculo vicioso sin salida por ahora (posible caída del Bitcoin y del precio del oro)

Los mercados están en estado de confusión debido a la enorme cantidad de noticias negativas que se ciernen sobre ellos sin un final claro a la vista. En este contexto

Pati Gani 11:13 2025-03-20 UTC+2

Análisis del par GBP/USD. El 17 de marzo. El mercado se ha dormido, la economía no le interesa a nadie.

El par de divisas GBP/USD el viernes "murió" definitivamente. En la ilustración a continuación se puede ver claramente que la volatilidad fue bastante alta en los primeros tres días

Paolo Greco 07:03 2025-03-17 UTC+2

Análisis del par EUR/USD. 17 de marzo. Ni rastro de corrección.

El par de divisas EUR/USD no logró continuar el débil movimiento a la baja del miércoles y jueves durante la jornada del viernes. Por lo tanto, una corrección contra

Paolo Greco 07:02 2025-03-17 UTC+2

El Bitcoin huye de la criptocapital del mundo

Donald Trump prometió hacer de América la criptocapital del mundo, pero ¿quién necesita una capital de la que todos huyen? Las peores liquidaciones de empresas tecnológicas desde 2022 entristecieron

Marek Petkovich 12:02 2025-03-11 UTC+2

WTI – West Texas Intermediate. La recuperación de los precios del petróleo está limitada

Hoy, el petróleo ha intentado recuperarse desde los niveles más bajos observados desde septiembre de 2024. Sin embargo, la recuperación no puede considerarse positiva en el corto plazo. Los inversores

Irina Yanina 10:55 2025-03-11 UTC+2

Las negociaciones entre EE. UU. y China sobre comercio están estancadas

Según informes de los medios, las negociaciones entre EE. UU. y China sobre comercio y otros asuntos se han estancado en niveles bajos, ya que ambas partes no logran entenderse

Jakub Novak 07:59 2025-03-11 UTC+2

El gas sigue subiendo rápidamente de precio

Las cotizaciones del gas se han consolidado de manera firme por encima del nivel de $4, y en este momento no hay razones para el regreso del mercado bajista

Miroslaw Bawulski 13:07 2025-03-10 UTC+2

Análisis del par GBP/USD. El 10 de marzo. La libra esterlina sigue subiendo.

El par de divisas GBP/USD reanudó su movimiento alcista el viernes. El paquete estadístico estadounidense no fue lo suficientemente fuerte, lo que completó el cuadro general del desastre del dólar

Paolo Greco 07:29 2025-03-10 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

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 InstaForex anyway.

We are sorry for any inconvenience caused by this message.