Geopolitics heightens volatility, but market remains bullish

Geopolitical events have increased swings in global equity markets, yet investors retain cautious optimism toward US stocks. The situation around Venezuela and rising tensions in the energy sector have driven heightened interest in US oil companies, which has supported equity indices.

Against this backdrop, the Dow Jones has already recorded the first annual high, while the S&P 500 continues to be viewed as an attractive investment asset. Energy sector gains are offsetting external risks and underpinning the market's overall positive sentiment. Follow the link for more details.

As a reminder, traders can use trading instruments available at InstaForex to take advantage of elevated volatility and stock?index movements.

S&P 500 forecasts for 2026 remain positive

Experts expect the S&P 500 to rise by roughly 9% in 2026, which is below the growth rates of recent years but still indicates market resilience. The slowdown in momentum is attributed to more muted expectations for economic growth and corporate earnings.

At the same time, investor sentiment remains predominantly optimistic. According to surveys, approximately 71% of market participants believe the index will increase by at least 10% over the course of the year, reflecting continued confidence in the US equity market. Follow the link for more details.

Banking, technology set tone for year start

Since the start of the year, banking and technology stocks have shown steady gains, forming the basis for a positive market trend. The technology sector plays a significant role in this movement, continuing to receive support from active developments in artificial intelligence.

An additional driver has been NVIDIA's new developments, which have boosted investor interest in AI?related companies. This supports overall optimism and contributes to capital inflows into high?tech and financial assets. Follow the link for more details.

To trade banking and technology stocks, traders can use tools offered by the InstaForex platform.

Dovish Fed rhetoric and weak data support stocks

Disappointing US business activity data have strengthened expectations for a softer monetary policy. Dovish rhetoric from Fed officials is supporting the equity market, reducing rate?related pressure on stocks.

Investors remain focused on labor market data. The US economy is expected to add around 60,000 jobs in December and the unemployment rate to fall to 4.5%, which could further bolster market confidence.

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Technical S&P 500 analysis indicates bears' weakness

The technical picture for the S&P 500 continues to indicate sellers' weakness. Bears are losing initiative, creating conditions for the formation of long positions and the preservation of upward momentum.

The key resistance level remains at 6,925 points. A confident breakout above this level could be a signal to add to longs and confirm further buyer dominance in the market. Follow the link for more details.