#MarketPullback
As of May 5, 2025, global financial markets are undergoing significant adjustments after a prolonged period of growth. Investors are closely monitoring events, trying to understand whether this is a temporary downturn or the beginning of a more severe recession.
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📉 Current Market Situation
Institutional pessimism: According to a Barron's survey, only 26% of professional investors remain optimistic about the market, the lowest level since 1997. Major concerns relate to President Trump's tax policy and the likelihood of a global trade war.
Reduced profit forecasts: Analysts have lowered profit forecasts for S&P 500 companies in the second quarter to 2.4%, exceeding the 20-year average decline of 1.9%. This indicates increasing concerns about inflation and taxes.
Oil prices: After OPEC+ announced an increase in oil production, prices dropped by about 4%, which also affected investor sentiment.
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📊 What is the concept of 'pullback'?
A pullback is a short-term price decline of an asset after a period of growth. Typically, it lasts for several trading sessions and is seen as an opportunity to buy at a lower price.