S&P 500 Hits Record High, Dow Rises 400 Points as Trump Advocates for Lower Rates and Oil Prices
Stocks surged following President Trump's call for immediate interest rate cuts and lower oil prices during a virtual address to the World Economic Forum.
NEW YORK — The S&P 500 surged to new record highs on Thursday, fueled by President Donald Trump's calls for lower interest rates and cheaper oil prices. The broad market index gained 0.53%, hitting an all-time intraday high for the second consecutive day and closing at 6,118.71, surpassing its previous high of 6,090.27 set in early December.
Meanwhile, the Dow Jones Industrial Average rose 408.34 points, or 0.92%, to finish at 44,565.07, while the Nasdaq Composite added 0.22%, closing at 20,053.68. This marked the fourth consecutive winning session for all three major indexes.
The market rally came after Trump, in a virtual address to the World Economic Forum, said he would "demand that interest rates drop immediately." The president also expressed his intention to ask Saudi Arabia to lower oil prices, which caused a drop in crude oil prices. The comments led to a decline in short-term Treasury yields.
Investor sentiment has been buoyed by optimism over potential tax cuts and deregulation under Trump, coupled with signs of robust economic growth. Although concerns over tariffs linger, the lack of immediate action on these trade barriers during Trump's early days back in office has reassured many investors.
"He really can’t control interest rates, but the market likes to hear that kind of stuff," said Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report. "So far, the market seems to like what Trump’s policies are shaping up to be, but we'll have to see if there's follow-through."
In earnings news, the fourth-quarter season has started off strong, with positive reports from companies like Netflix and major banks. However, American Airlines weighed on market enthusiasm, as its stock plunged more than 8% after the company issued weaker-than-expected guidance.
Despite some challenges, the overall sentiment remains positive, with traders closely watching the impact of Trump's policies and economic indicators in the coming weeks.