Despite all the headwinds, the US stock market remains overly optimistic. Yesterday, the S&P 500 (SPX) index surpassed a local high of 6,340. While this peak may seem insignificant at first glance, it serves as a critical technical marker—effectively dividing bearish and bullish scenarios.
With SPX now trading above this level, the bearish outlook is invalidated, and the price is poised to grow further toward 6,410.
Meanwhile, Apple has committed to invest an additional $100 billion to expand production in the United States, offsetting the impact of future iPhone tariffs. Fundamentally, this news supports the American stock market. As a result, the total volume of Apple’s investments in the US could reach $600 billion in the next four years. Earlier in 2025, the company announced plans to inject $500 billion and hire 20,000 employees nationwide during this period. Most Apple products—including iPhones and iPads—are still made in Asia (primarily China), even though production has partially shifted to Vietnam, Thailand, and India in recent years.
Despite political pressure, analysts agree that iPhone manufacturing in the US remains impractical due to high labor costs and global supply chain complexities. The US stock market also gains support from growing expectations of near-term Fed rate cuts, which would reduce borrowing costs, lower production expenses, and ultimately boost corporate output and profits.
In general, buying SPX is recommended.
Profits should be taken at the level of 6,410, while a Stop Loss order could be set at 6,280.
The size of the open position should be calculated in a way that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening such a position, we recommend to avoid entering the market on this signal and wait for other low-risk trade opportunities.
This content is for informational purposes only and is not intended to be investing advice.
