empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
11.03.2025 10:00 AM
Markets Do Not Forgive Betrayal
Open trading account Open demo account

The S&P 500 sell-off accelerated amid the White House's indifference to a potential economic downturn. The broad stock index tumbled as Donald Trump refused to rule out a U.S. recession, leading to a decline driven by tech stocks. The NASDAQ 100 suffered its worst trading day since 2022, while the Magnificent Seven has already fallen 20% from its December peaks.

Performance of the Magnificent Seven Stocks

This image is no longer relevant

Donald Trump stated that the U.S. economy is in a transition period and that investors should not focus on the stock market. This starkly contradicts the expectations investors had following the presidential election. The Republican had promised that the U.S. would be fine, as higher tariffs would offset tax cuts. However, in early spring, the White House dramatically changed its stance, now arguing that the path to future prosperity and a new "Golden Age" requires some short-term sacrifices.

Saying that the stock market is not worth watching could be considered a betrayal. During his first presidential term, Trump used stock market performance as a benchmark of his administration's success. Investors now understand why—back then, the S&P 500 was rising, which pleased the Republican leader. Now that the index is falling, it is no longer a valid measure? Repeating his past rhetoric would mean admitting failure.

The market is increasingly fearful that tariffs could devastate the U.S. economy, leading to the first surge in the volatility index (VIX) since August. The VIX is now above 30. According to Nomura Securities, the gradual rise in the "fear index," rather than a sharp spike as seen in past market corrections, signals an increasing likelihood of further stock market declines. JP Morgan has abandoned its S&P 500 target of 6,500, which was approximately 13% above current levels, arguing that greater uncertainty creates a wider range of possible market outcomes.

U.S. Stock Market Volatility Trends

This image is no longer relevant

Both Citigroup and HSBC Holdings have advised clients to reduce their exposure to U.S. stocks and seek opportunities elsewhere, particularly in China and Europe. Unlike the United States, these regions are pursuing fiscal stimulus measures to mitigate the effects of ongoing or potential trade wars with the U.S.

This image is no longer relevant

Meanwhile, recession risks in the U.S. are soaring.

  • Goldman Sachs raised its probability of a U.S. recession from 15% to 20%.
  • Yardeni Research increased its estimate from 20% to 35%.
  • JP Morgan raised its forecast from 35% to 40%.
  • Morgan Stanley lowered its GDP growth projections to 1.5% for 2025 and 1.2% for 2026.

Technical Outlook for the S&P 500

The daily chart of the S&P 500 indicates that the market remains in a correction within a broader uptrend. The index's distance from its EMA suggests growing bearish momentum. Traders should continue following the previously outlined short-selling strategy, at least as long as the index remains below 5,800. Pullbacks that fail at the 5,670 and 5,750 resistance levels could provide new short-selling opportunities.

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
All Analytics
Crypto-currencies
Trading tips for crypto market on June 27 (North American session) Bitcoin made another attempt to return to the $108,000 level, but failed to hold it and corrected lower, falling below the $107,000 mark, a move that could lead
Miroslaw Bawulski
15:47 2025-06-27 +02:00
2830
Forecast
USD/JPY: Simple Trading Tips for Beginner Traders on June 27th (U.S. Session) Trade Review and Recommendations for the Japanese Yen The price test of 144.59 occurred when the MACD had already moved significantly above the zero line, which limited the pair's upward
Jakub Novak
13:20 2025-06-27 +02:00
2665
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • 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

Top analytics

Relevance up to 02:00 UTC--5
PCE Index Data Unlikely to Significantly Impact Market Dynamics (Potential for Renewed Growth in EUR/USD and Bitcoin)
09:52 2025-06-27
Fundamental analysis
Relevance up to 04:00 UTC--5
The Yen Has Lost Its Bullish Momentum
12:21 2025-06-27
Fundamental analysis
Relevance up to 03:00 UTC--5
Inflation in Canada Remains Too High – USD/CAD May Accelerate Its Decline
11:16 2025-06-27
Fundamental analysis
Relevance up to 11:00 UTC--5
Trading Signals for GOLD (XAU/USD) for June 27-30, 2025: buy above $3,250 or sell below $3,320 (rebound - 6/8 Murray)
18:12 2025-06-27
Technical analysis
Relevance up to 11:00 UTC--5
Trading Signals for EUR/USD for June 27-30, 2025: sell below 1.1750 (21 SMA - 8/8 Murray)
18:10 2025-06-27
Technical analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

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.