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
14.04.2025 09:45 AM
The Market Wants to, But Hesitates
Open trading account Open demo account

Do you have a plan, Mr. Donald Trump? Some believe what's happening is masterful diplomacy — they hope that once serious proposals from other countries reach the White House, tariffs will be lifted, GDP will accelerate to 3%, and the S&P 500 will hit new record highs. Others are convinced that import tariffs will drive the U.S. economy into a recession, causing the broad stock index to resume its decline. One thing is clear: investors are tired of uncertainty and hope that clarity regarding the new trade regime will enable them to buy stocks. But not so fast.

Following the announcement of sweeping tariffs, we witnessed ten days of historic turbulence in financial markets. The S&P 500's market cap plunged by $5.8 trillion only to surge again by $4 trillion. The White House alternated between imposing tariffs and announcing postponements. One day, it raised the stakes against Beijing to 145%; the next, it exempted $100 billion worth of popular Chinese electronics from duties — about 23% of total imports from China. Is it any surprise that the VIX surged to its highest levels since March 2020? Is fear still ruling the market?

U.S. Stock Market Volatility Dynamics

This image is no longer relevant

Yes and no. There's an aversion to American assets due to the White House's constantly shifting tone and decisions. At the same time, we're seeing a resurgence of FOMO — the "buy or miss out" strategy. Indeed, the pullback in the S&P 500 has left investors stuck in a "tempted but cautious" state of mind.

This historic volatility has made safe-haven assets the winners: gold, the Japanese yen, and the Swiss franc. At first glance, the euro's strength might seem illogical, but considering that German bonds have become beneficiaries of the White House's erratic decisions — as opposed to U.S. Treasuries — it all starts to make sense.

Asset Performance During Days of Historic Market Volatility

This image is no longer relevant

Investors are confident that Europe and China will stimulate their economies to counteract the negative impact of tariffs and trade wars. Meanwhile, Trump's loosening grip on the European Union has accelerated the outflow of capital from the US to the EU, putting pressure on the S&P 500.

This image is no longer relevant

Furthermore, Wall Street Journal experts have raised the probability of a U.S. recession within the next 12 months from 22% to 45%. The GDP forecast for 2025 has been downgraded from 2% to 0.8%, with some analysts expecting a 2% contraction this year. Others, however, are betting on a swift tariff rollback and GDP expansion to 3%. The first scenario appears more likely — suggesting the stock market is not out of the woods yet. The rough patch is far from over.

From a technical perspective, an inside bar was played out on the S&P 500's daily chart, allowing for the formation of long positions. Now it's time for the second phase of the previously announced strategy: profit-taking on long positions and selling on pullbacks from resistance at 5500 and 5600.

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
Wave analysis
Weekly Forecast Based on Simplified Wave Analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, EUR/GBP, and the US Dollar Index on June 2nd During the upcoming week, the British pound is expected to move from its current zone toward the calculated resistance area. In the early days, a downward vector with potential pressure
Isabel Clark
11:53 2025-06-02 +02:00
1045
Wave analysis
Weekly Forecast Based on Simplified Wave Analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold on June 2nd In the coming days, the euro is expected to continue moving sideways. A short-term decline toward the support zone is possible. Afterward, conditions for a reversal may form. The start
Isabel Clark
11:48 2025-06-02 +02:00
1045
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

Throughout June, the Markets Will Be as Intense as During the Early Months of Trump's Presidency (there is a likelihood of a continued rise in the price of gold and a fall in USD/JPY)

The challenging month of May was experienced differently across global markets, but the main beneficiaries were stocks, which gained momentum from late April and extended their rally into May—something that
Pati Gani 09:45 2025-06-02 UTC+2

What to Pay Attention to on June 2? A Breakdown of Fundamental Events for Beginners

Quite a few macroeconomic reports are scheduled for Monday, but only one truly important one. This concerns the U.S. ISM Manufacturing PMI. It's worth recalling that two business activity indices
Paolo Greco 06:07 2025-06-02 UTC+2

GBP/USD Overview – June 2: Another Surprise from Donald Trump

The GBP/USD currency pair experienced low volatility on Friday, but last week's events can already be overlooked — Trump never sleeps. Traders barely had time to recover from last Thursday's
Paolo Greco 03:55 2025-06-02 UTC+2

EUR/USD Overview – June 2: The American Circus Gains Momentum

The EUR/USD currency pair traded calmly on Friday, but this calm will not last long. Last week, particularly on Thursday, another storm erupted in the market, caused by a familiar
Paolo Greco 03:55 2025-06-02 UTC+2

EUR/USD. Hello June: ISM Indices, Eurozone Inflation, ECB Meeting, and May Nonfarms

The economic calendar for the upcoming week is packed with important events. The first week of every month is traditionally the most informative for EUR/USD traders, and June will
Irina Manzenko 01:48 2025-06-02 UTC+2

U.S. Dollar: Weekly Preview

The economic news background in the U.S. will be very strong. It's the beginning of a new month, so reports on business activity, the labor market, job openings, and unemployment
Chin Zhao 00:52 2025-06-02 UTC+2

British Pound: Weekly Preview

The British pound is currently experiencing what is arguably one of its best periods in the last 15 years. Of course, during such a long period, there have been moments
Chin Zhao 00:52 2025-06-02 UTC+2

Euro: Weekly Preview

The euro continues to experience no issues in its current trajectory. I would even say it hasn't had such a good period in quite a long time. Most importantly, this
Chin Zhao 00:52 2025-06-02 UTC+2

XAU/USD. Analysis and Forecast

Gold is declining below the $3300 level today. U.S. PCE data met expectations. A shift in trade flows is helping the U.S. dollar regain positive momentum. This is also undermining
Irina Yanina 17:37 2025-05-30 UTC+2

Inflation Is Almost Under Control

While the euro continues to hold its ground against the dollar, European Central Bank (ECB) Governing Council member Fabio Panetta indicated during an interview today that inflation in the eurozone
Jakub Novak 13:40 2025-05-30 UTC+2

Top analytics

Relevance up to 20:00 2025-06-02 UTC--4
GBP/USD Overview – June 2: Another Surprise from Donald Trump
03:55 2025-06-02
Fundamental analysis
Relevance up to 22:00 2025-06-02 UTC--4
Forecast for EUR/USD on June 2, 2025
04:36 2025-06-02
Technical analysis
Relevance up to 20:00 2025-06-02 UTC--4
EUR/USD Overview – June 2: The American Circus Gains Momentum
03:55 2025-06-02
Fundamental analysis
Relevance up to 02:00 2025-06-03 UTC--4
EUR/USD: Simple Trading Tips for Beginner Traders on June 2. Review of Yesterday's Forex Trades
09:01 2025-06-02
Forecast
Relevance up to 20:00 2025-06-02 UTC--4
Trading Recommendations and Analysis for EUR/USD on June 2: A New Storm is Near...
03:55 2025-06-02
Trading plan
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.