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25.03.202512:08 Forex Analysis & Reviews: US stock market gains new bullish momentum. Investors grasp signal that downward correction over

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Exchange Rates 25.03.2025 analysis

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 of 5,500 to 6,000

The stock market revived on optimism regarding news that the Trump administration may take a more measured approach to the upcoming tariffs, which are set to take effect on April 2.

In this context, the S&P 500 index rose 1.8%, closing at a two-week high above its 200-day moving average (5,752), while the Dow Jones Industrial Average gained 1.4%, and the Nasdaq Composite jumped by 2.3%.

Technology stocks led the rally, especially those that had been sold off earlier in 2025. Tesla (TSLA 278.39, +29.68, +11.9%) and NVIDIA (NVDA 121.41, +3.71, +3.2%) stood out in this regard. Tesla shares are still 31.1% lower this year, while NVIDIA has decreased by 9.6% since the beginning of the year.

Positive economic data further boosted sentiment. The preliminary US Services PMI for March climbed to 54.3 from 51.0 in February, overshadowing the decline in the preliminary US Manufacturing PMI for March, which fell to 49.8 from 52.7 in February.

The sustained rally left ten out of the 11 S&P 500 sectors higher, with eight of them posting gains of over 1.0%. In the bond market, the yield on US Treasury bonds rose, indicating that investors are regaining the appetite for risk.

The yield on 10-year bonds increased by eight basis points to 4.33%.

Year-to-date: Dow Jones Industrial Average: +0.1% S&P 500: -1.9% S&P Midcap 400: -3.3% Russell 2000: -5.4% Nasdaq Composite: -5.8%

Economic calendar on Monday: March US Manufacturing PMI (flash): 49.8; previous: 52.7 March US Services PMI (flash): 54.3; previous: 51.0

Market participants will get to know the following data on Tuesday: 9:00 AM ET: January FHFA House Price Index 9:00 AM ET: January S&P Case-Shiller Home Price Index 10:00 AM ET: March Consumer Sentiment Index 10:00 AM ET: February New Home Sales

Energy

Brent oil at $73.10, up about $1 in 24 hours. Crude oil is trading higher on optimism about the improving state of the US economy and some positive news regarding Trump's tariffs.

Conclusion

The US stock market has formed a classic pattern for the beginning of a new uptrend. We plan to hold long positions at least until the S&P 500 index reaches 6,000, but if all goes well, possibly further. If you're not in the US market, now is a good point to start buying the S&P 500.

Jozef Kovach
Analytical expert of InstaForex
© 2007-2025

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