USA500

USA500 Weekly Special Report based on 1.00 Lot Calculation:

USA500 INDEX:

• WHAT IS A STOCK INDEX: According to Investopedia.com, a stock index measures the price performance of a basket (group) of stocks using a standardized methodology. The S&P 500 Index is one of the world's best-known indexes and one of the most commonly used benchmarks for the stock market.
• COMPONENTS: USA500 includes 500 companies, including Tesla, Apple, Google, Nvidia, Meta, and Goldman Sachs.

BIG TECH’S MASSIVE A.I. SPENDING IN 2025 AND BEYOND

• Meta (Facebook), Alphabet (Google), Microsoft, and Amazon plan to invest over $250 billion in capital expenditures this year, with a strong focus on A.I. and cloud infrastructure.
  • Meta (Facebook): ~$65 billion
  • Alphabet (Google): ~$80 billion
  • Microsoft: ~$85 billion
  • Amazon: ~$120 billion
• BREAKING (FEBRUARY 24): APPLE ANNOUNCED A $500 BILLION INVESTMENT IN THE USA. Apple announced that it plans to invest more than $500 billion in the United States over the next four years, including plans to hire 20,000 people and build a new server factory in Texas (Source: APNEWS).

US PRESIDENT DONALD TRUMP AND HIS IMPACT ON THE US STOCK MARKET:

• STATISTICS (US STOCKS DURING TRUMP’S FIRST TERM (2017 – 2021)): USA500 INDEX ROSE 25.27% WITHIN THE FIRST 12 MONTHS FOLLOWING DONALD TRUMP'S INAUGURATION AS 45TH U.S. PRESIDENT (January 20, 2017 – January 20, 2018). In addition, the USA500 index rose 70.04% during the entire first term of Donald Trump’s service as 45th President of the USA.

Data Source: MetaTrader 4 Platform

Please note that past performance does not guarantee future results

US FEDERAL RESERVE HAS BEGUN YET ANOTHER INTEREST RATE CUT CYCLE:

• FEDERAL RESERVE INTEREST RATE AT 4.5%. The US Federal Reserve decided to cut its benchmark interest rate by 0.50% points in September, 0.25% points in November, and 0.25% in December. The bank expects to cut rates two more times in 2025 to slash its benchmark rate to 4% by the end of 2025. The bank expects rates to fall to 3.40% in 2026 and further down to 3.10% in 2027.
• NEXT FED INTEREST RATE DECISION: March 19, 2025. Markets have recently raised their expectations for three interest rate cuts in 2025, which could eventually bring rates down to 3.75% from the current 4.5% (Source: CMEGROUP.COM).

EVENTS:

• WEDNESDAY, MARCH 5, AT 13:15 GMT: ADP NONFARM EMPLOYMENT CHANGE (FEBRUARY): A lower-than-expected result is anticipated to be be supportive for USA500 Index because it is expected to increase the odds for more FED interest rate cuts. This report is a measure of the monthly change in non-farm, private employment.
• FRIDAY, MARCH 7, AT 13:30 GMT: US NONFARM PAYROLLS (NFP) AND UNEMPLOYMENT RATE (FEBRUARY): Data for January missed estimates for 169,000 as the actual number came in lower, at 143,000. The unemployment rate, however, beat expectations in January (4% vs. 4.1% expected).
• WEDNESDAY, MARCH 12, at 12:30 GMT: U.S INFLATION (CPI) (FEBRUARY): The U.S is scheduled to report its CPI figure for the month of February. The CPI inflation for January came out at 3%, up from the 2.9% in December.

PRICE ACTION:

• USA500 INDEX HIT AN ALL-TIME HIGH OF 6,165.82 (FEBRUARY 19, 2025). The index has traded around 5,810 and if a full recovery takes place, USA100 could rise around 6%. Although, the index could decline in price as well.
• USA500 HAS TESTED ITS LOWEST PRICE IN FOUR MONTHS (5,743.74). The index has recently retreated from its all-time high of 6,165.82, hitting its lowest rate in 4 months on March 5, 2025 (5,743.74).

USA500, March 5, 2025
Current Price: 5,810

Example of calculation based on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 10 units

2. Calculations for exchange rate used as of 12:00 (GMT) 05/03/2025

There is a possibility to use Stop-Loss and Take-Profit.

• You may wish to consider closing your position in profit, even if it is lower than suggested one.
• Trailing stop technique could protect the profit.