Forex Analysis & Reviews: 21.02.2025 - Stock Market on February...

InstaForex Loprais Team - Official participant of the Dakar rally

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

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

OYS account

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

InstaForex Loprais Team - Official participant of the Dakar rally

21.02.2025 12:54 PM

Stock Market on February 21st: S&P 500 and NASDAQ Undergo a Decent Correction

Futures on U.S. stock indices have slightly recovered today after yesterday's significant decline. The S&P 500 is currently trading with a slight loss, while the NASDAQ is hovering around zero. Shares of Chinese technology companies surged, marking their strongest move in the past three years, which spurred gains across the Asian markets. This rally was driven by optimism surrounding artificial intelligence (AI) developments. The Hong Kong-listed tech stock index rose, led by a 14% jump in Alibaba's shares. Meanwhile, European index futures saw a slight decline.

While investors remain concerned about rising geopolitical tensions and the expanding tariff war, Alibaba and other Chinese tech stocks have gained traction in recent weeks due to enthusiasm around the DeepSeek AI model. This rally reflects not only hopes for technological advancements but also China's broader push for self-sufficiency in key tech sectors. DeepSeek, developed as part of Beijing's efforts to reduce reliance on Western technologies, is seen as a potential competitor to models from OpenAI and Google. If successful, DeepSeek could strengthen the global position of Chinese companies in the AI sector and reduce the influence of foreign firms.

Whether DeepSeek can fully match or surpass the capabilities of Western counterparts remains uncertain, but its emergence has already significantly impacted China's tech sector. Many economists believe that China will undergo major structural reforms, and the recent market upswings may continue.

Following the stock surge, Alibaba's CEO Eddie Wu stated that AI development is now the company's primary goal. "The firm intends to continue developing models that push the boundaries of intelligence," he told investors during an earnings call.

On Friday, Japan's inflation data showed an increase. Consumer prices, excluding fresh food, rose by 3.2% year-over-year in January, marking the highest gain since June 2023. This reinforces expectations of further rate hikes by the Bank of Japan, with traders pricing in an 84% probability of a 25-basis-point hike in July. However, comments from Governor Ueda caused some market uncertainty, as he reaffirmed the central bank's longstanding commitment to stabilizing the bond market.

In commodities, oil posted its largest weekly gain since early January amid growing supply uncertainties. Gold recorded its eighth consecutive weekly gain, driven by rising safe-haven demand due to geopolitical and trade tensions.

Technical Outlook for the S&P 500

Demand for the index remains strong. Today, buyers will focus on overcoming the nearest resistance at $6,117, which would allow for a continuation of the upward trend and potentially push the index toward $6,127. A key priority for bulls will also be maintaining control over $6,152, which would further strengthen their position.

If the index moves lower due to weaker risk appetite, buyers must assert themselves around $6,107. A break below this level could quickly send the instrument back to $6,092, opening the door for a further decline to $6,079.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.