Current Developments
The current rally in the stock markets, particularly in the S&P 500, is driven by several factors. The index is nearing an all-time high, attributed to positive news and strong corporate earnings.
Trade Front and Trade Agreements
Reports of a temporary trade agreement between the USA and China have brightened market sentiment and promoted a recovery in the markets.
Strong Corporate Earnings
The “Magnificent 7,” a group of leading companies, have presented impressive quarterly results, bolstering investor confidence in the markets.
Historical Performance
With an increase of over 6.2%, the S&P 500 experienced its best month since 1990 in May 2025, underscoring its resilience.
Risks and Uncertainties
Despite positive developments, economic uncertainties remain that investors should keep an eye on.
Economic Uncertainties
Interest rate fluctuations, geopolitical tensions, and recession fears could continue to influence the markets.
Technical Analysis
The S&P 500 is moving within a trading range and may have difficulties breaking through the resistance zone of 6,149 points.
Seasonal Fluctuations
June is considered a difficult month for the S&P 500 with an average increase of only 0.2%.
Forecasts and Expectations
Goldman Sachs predicts an 11% increase in the S&P 500 in 2025, while technical analysts expect mid-term fluctuations.
In summary, the rally in the S&P 500 is driven by positive news and strong numbers; however, risks remain that could affect investments.