{"id":17911,"date":"2025-06-04T13:13:05","date_gmt":"2025-06-04T13:13:05","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=17911"},"modified":"2025-06-04T13:13:05","modified_gmt":"2025-06-04T13:13:05","slug":"forex-market-analysis-4-june-2025","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-eu\/analysis\/forex-market-analysis-4-june-2025\/","title":{"rendered":"S&amp;P 500 steady near highs after Barclays upgrade"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/54-8-1024x536.png\" alt=\"\" class=\"wp-image-17913\" srcset=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/54-8-1024x536.png 1024w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/54-8-300x157.png 300w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/54-8-768x402.png 768w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/54-8-500x262.png 500w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/54-8-400x209.png 400w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/54-8-350x183.png 350w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/54-8-200x105.png 200w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/54-8.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Market confidence is rising as Wall Street turns more optimistic, fuelled by easing trade concerns, solid earnings, and cooling inflation. With the S&amp;P 500 holding near record levels, investors appear focused on potential gains while staying alert to key economic signals.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>S&amp;P 500 holds steady near highs as Wall Street upgrades lift sentiment<\/strong><\/h2>\n\n\n\n<p>The S&amp;P 500 held its ground on Wednesday, consolidating just below its recent peak of 5,988.5, as investor sentiment remained upbeat amid a string of forecast upgrades from major Wall Street firms.<\/p>\n\n\n\n<p>Barclays became the latest to raise its year-end projection for the index, citing a reduction in trade tensions and expectations of earnings stabilisation by 2026.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The S&amp;P 500 just logged its best May in more than 30 years, in large part due to the return of dominance from the &quot;Magnificent Seven&quot; tech stocks. <a href=\"https:\/\/t.co\/88sARzrdYN\">https:\/\/t.co\/88sARzrdYN<\/a> <a href=\"https:\/\/t.co\/2z7lMNuCHU\">pic.twitter.com\/2z7lMNuCHU<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1930076283389477075?ref_src=twsrc%5Etfw\">June 4, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The bank increased its target to 6,050 from the previous 5,900, aligning with recent upgrades from Goldman Sachs, UBS, Deutsche Bank, and RBC Capital.<\/p>\n\n\n\n<p>These adjustments reflect the impact of stronger-than-anticipated Q1 earnings and growing optimism that tariff-related pressures will ease heading into 2025.<\/p>\n\n\n\n<p>Barclays strategists, led by Venu Krishna, maintained their 2025 earnings per share (EPS) forecast at $262 and introduced a 2026 EPS estimate of $285, with a 6,700 index target\u2014representing a potential 12% upside from current levels.<\/p>\n\n\n\n<p>They expect tariff-related disruptions to be absorbed by the end of FY2025, allowing a return to pre-disruption growth trends.<\/p>\n\n\n\n<p>While some inflationary and margin risks persist, Barclays sees minimal direct tariff impact by next year.<\/p>\n\n\n\n<p>May\u2019s robust performance added momentum to this bullish narrative, with the S&amp;P 500 climbing 6.2%\u2014its strongest monthly gain since November 2023.<\/p>\n\n\n\n<p>Markets were buoyed by a softer stance on tariffs from former President Trump, strong corporate earnings (particularly from AI-driven and cyclical sectors), and cooling inflation figures that renewed hopes for Federal Reserve rate cuts.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical analysis: Consolidation signals pause before next move<\/strong><\/h2>\n\n\n\n<p>The S&amp;P 500 appears to be entering a short-term consolidation phase after reaching a local high of 5,988.5.<\/p>\n\n\n\n<p>Following a sharp rebound from the 3 June low of 5,867.75, price action has remained firm, supported by strong bullish momentum during the latter half of the session.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"442\" src=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/image-1-1024x442-1.jpeg\" alt=\"\" class=\"wp-image-17912\" srcset=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/image-1-1024x442-1.jpeg 1024w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/image-1-1024x442-1-300x129.jpeg 300w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/image-1-1024x442-1-768x332.jpeg 768w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/image-1-1024x442-1-500x216.jpeg 500w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/image-1-1024x442-1-400x173.jpeg 400w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/image-1-1024x442-1-350x151.jpeg 350w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/06\/image-1-1024x442-1-200x86.jpeg 200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">SP500 hovers near 5988 peak after sharp rebound from 5867; bullish trend softens into consolidation, as seen on the <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263?mt=8\" target=\"_blank\" rel=\"noopener\" title=\"VT Markets app\">VT Markets app<\/a>.<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The short-term moving averages (5, 10, and 30) currently support a bullish bias, with the shorter EMAs positioned above the longer MA.<\/p>\n\n\n\n<p>However, these are beginning to flatten, indicating a potential loss of upward momentum. The MACD histogram is narrowing, and the MACD lines are converging\u2014both pointing to a possible pause in buying activity.<\/p>\n\n\n\n<p>While the broader trend remains upward, the index is trading within a narrow range near 5,978, suggesting indecision near resistance.<\/p>\n\n\n\n<p>A breakout above 5,988.5 could clear the way for further upside, while a dip below 5,960 may trigger short-term corrective pressure.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Outlook: Cautious optimism amid macro sensitivities<\/strong><\/h2>\n\n\n\n<p>Despite the bullish backdrop, traders should remain cautious as the index hovers near record highs.<\/p>\n\n\n\n<p>Markets remain sensitive to macroeconomic data, particularly wage inflation and consumer spending figures, which could inject short-term volatility.<\/p>\n\n\n\n<p>Any upside surprises in upcoming CPI or PCE data could dampen expectations for near-term Fed rate cuts.<\/p>\n\n\n\n<p>Nevertheless, as long as the 5,940 support level holds, the overall trend remains intact.<\/p>\n\n\n\n<p>Barclays\u2019 upgraded target of 6,050 is now a key level to watch for summer positioning, with technical and fundamental factors aligned in favour of continued strength\u2014albeit with potential speed bumps along the way.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noopener\" title=\"here\">here<\/a> to open account and start trading.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market confidence is rising as Wall Street turns more optimistic, fuelled by easing trade concerns, solid earnings, and cooling inflation. With the S&amp;P 500 holding near record levels, investors appear focused on potential gains while staying alert to key economic signals. S&amp;P 500 holds steady near highs as Wall Street upgrades lift sentiment The S&amp;P <a href=\"https:\/\/www.vtmarkets.com\/en-eu\/analysis\/forex-market-analysis-4-june-2025\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":2,"featured_media":17913,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37],"tags":[],"class_list":["post-17911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts\/17911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/comments?post=17911"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts\/17911\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/media\/17913"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/media?parent=17911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/categories?post=17911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/tags?post=17911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}