empty
06.02.2025 03:18 PM
U.S. Stock Market Faces a Difficult Year

According to a JPMorgan Chase & Co. study, this week's turmoil in global financial markets, triggered by a series of U.S. tariff announcements and trade restrictions, appears to mark the beginning of an unstable year. The bank's annual survey indicates that the biggest market drivers in 2025 will be inflation and protectionist tariffs, followed by geopolitical tensions. Around 41% of respondents cited volatility as the most pressing daily trading challenge, compared to 28% last year.

This image is no longer relevant

In 2025, inflation is expected to continue exerting significant pressure on global markets. Countries facing rising inflation rates will be forced to tighten economic policies—including raising or maintaining interest rates and cutting government spending—as key tools to combat price increases. These measures will likely affect consumer spending and investment activity, posing risks to economic growth.

Meanwhile, protectionist tariffs, introduced to shield domestic manufacturers, will reshape market structures. Such measures could raise import costs, further exacerbating inflation and reducing living standards. Moreover, they may provoke retaliatory actions from trading partners, escalating global trade conflicts.

"This year brings an unexpectedly volatile environment," the JPMorgan report states. "Markets are reacting to headlines in surprising ways, and this trend appears likely to continue."

Traders remain on edge due to the uncertainty surrounding the impact of tariffs on different asset classes. The annual survey of more than 4,200 institutional traders was conducted before U.S. President Donald Trump rattled global markets with a wave of trade tariffs. These concerns are expected to fuel currency trading, particularly in the Canadian dollar (CAD), Mexican peso (MXN), and offshore Chinese yuan (CNH), while also casting doubt on the continued upward trajectory of the U.S. stock market, including the S&P 500 and Nasdaq.

Tariffs, Inflation, and the Market Response

The risk that higher import prices could reignite inflation has persisted since Trump's election in November, dashing hopes that the Federal Reserve would pursue further rate cuts this year.

Following Trump's directive to impose 25% tariffs on all imports from Canada and Mexico, which he later postponed after leaders of both nations pledged stronger efforts to curb illegal immigration and drug trafficking, risk appetite briefly returned to financial markets. However, whether Trump will maintain his wait-and-see approach remains a key question.

Stock markets, including those in Asia, have also recovered. A broad 10% tariff on Chinese imports has already taken effect, yet Beijing's response has been relatively mild, fueling speculation that neither side wants to escalate a full-scale trade war.

This image is no longer relevant

S&P 500 Technical Outlook

Demand for the S&P 500 remains strong. The key objective for buyers today will be to break through resistance at $6,069. Achieving this would sustain the upward trend and pave the way for a push toward $6,079.

An equally important bullish target will be controlling $6,092, which would strengthen buyers' positions.

However, if the index pulls back due to declining risk appetite, buyers must defend the $6,058 level. A break below this level could push the index further down toward $6,047 and $6,038, opening the door to deeper corrections.

Jakub Novak,
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

US stock market gains new bullish momentum. Investors grasp signal that downward correction over

S&P500 Market update on March 25 Snapshot of the US stock market on Monday: Dow +1.4%, NASDAQ +2.3%, S&P 500 +1.8%, S&P 500 trading at 5,767 in a range

Jozef Kovach 11:08 2025-03-25 UTC+2

Stock Market Under Threat of Decline

Yesterday, the S&P 500 stock index posted a solid gain of 1.76%, reaching the target level of 5769 (the low from January 13). At the same time, the signal line

Laurie Bailey 04:59 2025-03-25 UTC+2

S&P 500: from euphoria to collapse

The wave of optimism that swept through US stock markets following Donald Trump's re-election turned out to be short-lived. Euphoria quickly gave way to a deep correction amid escalating trade

Anna Zotova 13:55 2025-03-24 UTC+2

US stock market on March 24: SP500 and NASDAQ gathering steam in light of news on tariffs

Today, US and European stock futures are trading higher amid signs that the next round of tariffs from President Donald Trump may be more restrained than expected. Investors responded positively

Jakub Novak 10:42 2025-03-24 UTC+2

US market attempts to rebound. Prospects of US strike against Iran support oil prices

S&P 500 Overview for March 24 The US market is attempting to rebound Major US indices on Friday: Dow: +0.1%, NASDAQ: +0.5%, S&P 500: +0.1%,S&P 500: 5,667, trading range: 5,500–6,000

Jozef Kovach 10:15 2025-03-24 UTC+2

Stock Market Outlook for March 21st: S&P 500 and NASDAQ Under Pressure Again

At the close of yesterday's regular trading session, U.S. stock indices ended in the red. The S&P 500 fell by 0.22%, while the Nasdaq 100 lost 0.33%.Asian stock indices also

Jakub Novak 10:46 2025-03-21 UTC+2

US market in consolidation phase. Trump seeks Senate backing for Iran strikes

S&P 500 Overview for March 21 The US market entered a phase of consolidation on Thursday as it struggled to define its next direction. Major US indices on Thursday

Jozef Kovach 10:10 2025-03-21 UTC+2

Federal Reserve throws lifebuoy to stock market

The wave structure on the 24-hour chart for #SPX is fairly clear. The first and most important point is the large-scale five-wave structure, which is so wide that it barely

Chin Zhao 09:21 2025-03-21 UTC+2

US market rallies as Fed holds rates steady

S&P500 Overview for March 20 The US market rallied as the Fed left interest rates unchanged. Key US indices on Wednesday: Dow: +0.9%, NASDAQ: +1.4%, S&P 500: +1.1% (S&P

Jozef Kovach 11:19 2025-03-20 UTC+2

US stock market on March 20: S&P 500 and Nasdaq regain their footing

US stock indices ended the day with solid gains. The S&P 500 climbed by 1.1% and the Nasdaq 100 closed 1.41% up. At the moment, S&P 500 futures

Jakub Novak 09:30 2025-03-20 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.