empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
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
09.06.2020 05:08 PM
Stock market correction lies around the corner, signals stop in growth
Open trading account Open demo account

This image is no longer relevant

The global stock market is affected by what is happening in the economy. Large-scale money injections, which are promoted by regulators in countries, make markets grow. The rise is so rapid that it has already managed to level all the losses that have occurred against the backdrop of the COVID-19 pandemic at the beginning of this spring. According to analysts, the market showed a record drop of $ 21 trillion. However, this fall was also managed to get rid of.

Nevertheless, experienced market participants have long hinted that there should be a significant turnaround on stock exchanges, followed by rapid growth, not limited by almost no external factors. The forecasts came true, but the question was how long this increase will continue because the bullish mood still persists.

In the meantime, the world's major stock indices managed to accomplish a grandiose act, which few believed in. All of which recovered to the level that was last recorded in February this year. Thus, the increase in the cost of securities averaged about 42%, which, without a doubt, is a very outstanding result. The last time such a significant increase was noted was in the crisis year of 2009 at the ACWI MSCI index.

However, experts suggest that very soon the market will feel the strongest volatility, which will force them downwards. But interest in risky assets is unlikely to disappear so soon.

In the meantime, the bulls have taken the lead in the market, for which there are several good reasons. Firstly, the stock indices of the United States of America have already strengthened quite well and crossed the line after which their rapid recovery began after a global fall in March. Secondly, the maximum rise is observed on the stock exchanges of the Asia-Pacific region for the past week. And thirdly, the securities of Europe, most likely, will be able to achieve the highest profit per month, which has not happened for more than ten years.

Of course, this is not the only support that the stock markets feel. So, the stimulus policy promoted by the majority of central banks of the states becomes a positive moment. The gradual removal of quarantine measures is not taking place at a very accelerated pace, but systematically. And the cherry on the cake should be considered a decrease in the number of applications submitted to the employment service of the United States of America, which neither the markets nor experts were prepared for, who assumed significant growth in preliminary forecasts. All this, taken together, cannot but cheer up the stock markets, which is happening today.

However, such a large number of positives cannot but alert the already rather dubious experts. Many believe that a situation similar to blowing a soap bubble is happening. Everyone knows what happens when the pressure gets too high. Some analysts warn about this explosion. The danger of correction is becoming stronger every day, especially against the backdrop of how investors act out news about higher rates of global economic recovery.

A disproportionately high jump in the value of securities in the last month of spring indicates that growth in the stock markets is largely due to speculative actions, while company earnings forecasts remain in the negative zone so far.

Thus, it becomes clear that the markets have gained too fast, which makes them too vulnerable. The slightest negative pressure from the outside can burst this huge bubble with great consequences for the participants. In the near future, you need to be ready for thorough corrections.

Maria Shablon,
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
Technical analysis
Forex forecast 22/04/2025: EUR/USD, GBP/USD, USD/JPY and Bitcoin Useful links: My other articles are available in this section InstaForex course for beginners Popular Analytics Open trading account Important: The begginers in forex trading need to be very careful
Sebastian Seliga
10:08 2025-04-22 +02:00
1045
Fundamental analysis
Market: Still Waters Run Deep It's impossible to inject capital into an economy destabilized by politics. Capital continues to flow out of the United States, and Donald Trump's attacks on the Federal Reserve only accelerate
Marek Petkovich
08:52 2025-04-22 +02:00
1015
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

Trump, Fed, and gold at $3,000? Markets respond to alarming signals

Investors are worried about the Fed's independence under Trump. US assets are falling, and the dollar is at a three-year low against the euro. Safe-haven currencies like
11:46 2025-04-21 UTC+2

US Market News Digest for April 21

The S&P 500 and Nasdaq slipped once again after Donald Trump lashed out at the Federal Reserve. His comments called the independence of the central bank into question, amplifying inflation
Ekaterina Kiseleva 11:41 2025-04-21 UTC+2

Trump, Fed, $3,000 Gold? Markets React to Red Flags

Investors Worried About Trump Fed Independence US Assets Fall, Dollar Hits Three-Year Low Against Euro Safe-Haven Yen, Swiss Franc Rise Gold Hits New Record High South Korea Stock Market
Thomas Frank 10:18 2025-04-21 UTC+2

US Market News Digest for April 18

Donald Trump ratcheted up his criticism against Federal Reserve Chairman Jerome Powell, once again calling for an immediate interest rate cut. This renewed political pressure adds to the tensions surrounding
Ekaterina Kiseleva 12:09 2025-04-18 UTC+2

When Giants Fall: How Alphabet and UnitedHealth Decisions Hurt the Market

Trading on U.S. stock markets ended in disarray on Thursday, with positive news from tech giants and pharma companies colliding with interest rate concerns. Market participants wavered between hopes
Thomas Frank 11:56 2025-04-18 UTC+2

Powell in danger? Can Trump fire Fed Chair and what does that mean for markets?

Donald Trump has once again set his sights on the Federal Reserve, accusing its chairman Jerome Powell of failing in monetary policy and threatening to fire him. But what lies
Аlena Ivannitskaya 08:43 2025-04-18 UTC+2

US Market News Digest for April 17

Jerome Powell's latest remarks triggered a sharp sell-off in US equities. Both the S&P 500 and the Nasdaq posted notable losses after the Fed chairman said that interest rates
Ekaterina Kiseleva 11:21 2025-04-17 UTC+2

When it all went wrong: Nvidia under pressure, stocks fall, Powell waits for clarity

Powell says economy slowing in Q1, may wait for more clarity European stocks slip ahead of ECB policy decision Nvidia warns of blame over US chip export restrictions to China
Thomas Frank 10:27 2025-04-17 UTC+2

US stock market in red zone: Dow Jones – 0.4%, Nasdaq – 0.1%. Upbeat corporate reports do not save Wall Street

The US stock market closed Tuesday with minor losses, as uncertainty over trade duties continued to weigh on investor sentiment. Consumer and healthcare stocks were particularly affected, though strong earnings
11:38 2025-04-16 UTC+2

US Market News Digest for April 16

Wall Street ended the session in the red. Shares of giants Boeing and Johnson & Johnson took the biggest hit as uncertainty around tariff policy continues to weigh on investor
Ekaterina Kiseleva 11:12 2025-04-16 UTC+2

Top analytics

Relevance up to 20:00 2025-04-22 UTC--4
GBP/USD Overview – April 22: Dollar Decline Neutralizes Any Positive Economic Changes
03:12 2025-04-22
Fundamental analysis
Relevance up to 20:00 2025-04-22 UTC--4
Trading Recommendations and Analysis for GBP/USD on April 22: Nothing Has Changed for the Pound
03:12 2025-04-22
Trading plan
Relevance up to 20:00 2025-04-22 UTC--4
EUR/USD Overview – April 22: The Emperor Has No Clothes...
03:12 2025-04-22
Fundamental analysis
Relevance up to 20:00 2025-04-22 UTC--4
Trading Recommendations and Analysis for EUR/USD on April 22: A New Storm in the Market
03:12 2025-04-22
Trading plan
Relevance up to 22:00 2025-04-23 UTC--4
Technical Analysis of Intraday Price Movement of GBP/CHF Cross Currency Pairs, Tuesday April 22, 2025.
06:58 2025-04-22
Technical analysis
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.