empty
10.06.2025 09:30 AM
The Market Lights Up New Stars

Nothing lasts forever under the moon. While markets advance gradually, investors closely monitor the competition among the world's most valuable companies. NVIDIA and Microsoft take turns leading, while Apple lingers hopelessly in third place. Tesla is performing the worst among the Magnificent Seven—which is hardly surprising given the recent clash between Donald Trump and Elon Musk. Yet history shows us that the stars of yesterday eventually fade away.

A quarter century ago, Cisco Systems shares were considered a must-have in any investment portfolio. However, since peaking in March 2000, simply putting money into a bank account would have delivered better results. The disheartening stories of General Electric and IBM, rulers of the 1990s and 1980s, respectively, suggest that NVIDIA's reign may also be short-lived—especially now that formidable Chinese competitors have emerged.

Market Capitalization of U.S. Stock Market Stars

This image is no longer relevant

Trump imposed restrictions on software and chip exports to China to keep the tech giant on the throne. Lifting those restrictions in exchange for Beijing loosening export controls on rare earth miners is a key topic in the U.S.-China trade talks in London. The continuation of the dialogue, the White House's willingness to make concessions, and National Economic Council Director Kevin Hassett's remark that the meeting will be brief all fuel the S&P 500 rally.

The market is increasingly convinced that the tariff peak has passed and the worst is over. Combined with strong corporate earnings and the resilience of the U.S. economy, this supports the continued northbound trajectory of the broad stock index. Still, there is growing sentiment in the market that the uncertainty surrounding White House economic policy must diminish for the S&P 500 rally to extend and reach new record highs. But is that even possible with such an eccentric president?

Performance Spread Between the Best- and Worst-Yielding Asset Classes

This image is no longer relevant

Meanwhile, investors are puzzled by another mystery. The returns on Treasury bonds, equities, cash, and corporate debt have converged. The difference between the highest- and lowest-yielding assets has reached its narrowest point in four decades. That implies either that risky assets are less useful than usual or that safe assets are not as safe—or possibly both.

This image is no longer relevant

Trump's policies are reshaping not just global trade but also financial markets.Technically, the S&P 500 continues its rally on the daily chart, heading toward the pivot level at 6060. Whether it breaks through will determine the fate of the broad stock index. A successful breakout of this key resistance will justify increasing long positions from the 5945 level. Conversely, a pullback would be a reason to lock in profits and consider selling.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The Yen Has Lost Its Bullish Momentum

The Consumer Price Index (CPI) in the Tokyo region declined in June from 3.4% to 3.1% year-over-year, marking the first signal so far that may indicate a slowdown in price

Kuvat Raharjo 12:21 2025-06-27 UTC+2

EUR/JPY. Analysis and Forecast

The EUR/JPY pair is regaining positive momentum during today's trading session, reversing its recent decline.The euro continues to benefit from the prevailing sentiment of selling the U.S. dollar

Irina Yanina 12:17 2025-06-27 UTC+2

Inflation in Canada Remains Too High – USD/CAD May Accelerate Its Decline

Inflation in Canada remains too high to expect a rate cut by the Bank of Canada at its upcoming meeting. In April, inflation sharply slowed to 1.7% y/y, and most

Kuvat Raharjo 11:16 2025-06-27 UTC+2

XAU/USD. Analysis and Forecast

Gold is drawing renewed selling interest today after breaking below the key $3300 level. Traders are awaiting the release of the U.S. Personal Consumption Expenditures (PCE) Price Index, which

Irina Yanina 10:47 2025-06-27 UTC+2

PCE Index Data Unlikely to Significantly Impact Market Dynamics (Potential for Renewed Growth in EUR/USD and Bitcoin)

The easing of tensions in the markets, following a pause in the military conflict in the Middle East, supports the return of the previous paradigm—an increase in demand for stocks

Pati Gani 09:52 2025-06-27 UTC+2

The Market Is Off the Leash

Greed has returned to the markets. While professionals warn about the need for caution amid geopolitical uncertainty, trade wars, and the state of the U.S. economy, retail investors are once

Marek Petkovich 09:16 2025-06-27 UTC+2

What to Pay Attention to on June 27? A Breakdown of Fundamental Events for Beginners

There are relatively few macroeconomic reports scheduled for Friday. Some experts refer to the PCE indicator as "important" and "the Fed's favorite," but we do not share that view

Paolo Greco 07:02 2025-06-27 UTC+2

GBP/USD Overview – June 27: History Doesn't Repeat Itself

The GBP/USD currency pair continued its strong upward movement throughout Thursday. Since the beginning of the week, the U.S. dollar has lost "only" 330 pips. As we've previously stated

Paolo Greco 03:41 2025-06-27 UTC+2

EUR/USD Overview – June 27: Can Trump Balance the Trade Deficit?

The EUR/USD currency pair is in a "free rise" (similar to the term "free fall"). The dollar is once again plunging into the abyss, just as we repeatedly warned. It's

Paolo Greco 03:41 2025-06-27 UTC+2

Powell, Trump, and Everyone Else

What will change with the arrival of a new Federal Reserve Chair? This is a rather important question, and the answer to it may already have implications for the U.S

Chin Zhao 00:08 2025-06-27 UTC+2
Can't speak right now?
Ask your question in the 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.