S&P 500 Hits Record High, Dow Soars 400 Points as Trump Advocates for Lower Rates and Oil Prices
Stocks surged after President Trump’s virtual address to the World Economic Forum, where he called for immediate rate cuts and lower oil prices.
NEW YORK — The S&P 500 reached a new all-time high on Thursday, buoyed by President Donald Trump’s calls for lower interest rates and cheaper oil prices.
The S&P 500 gained 0.53%, marking its second consecutive intraday record, closing at 6,118.71, surpassing its previous all-time closing high of 6,090.27 from early December. The Dow Jones Industrial Average jumped 408.34 points, or 0.92%, to close at 44,565.07, while the Nasdaq Composite rose 0.22%, finishing at 20,053.68. Thursday’s rally marked the fourth consecutive day of gains for all three major indexes.
Stocks received a boost following Trump’s remarks during a virtual address to the World Economic Forum, where he stated that he would “demand that interest rates drop immediately.” Additionally, Trump announced plans to request Saudi Arabia to reduce oil prices, which contributed to a drop in crude oil prices. Following Trump’s comments, short-term Treasury yields also fell.
The stock market has been supported this week by optimism about potential tax cuts, deregulation, and signs of continued economic growth under Trump’s leadership. While concerns about tariffs linger, investors have found reassurance in the absence of new actions on trade policy during Trump’s early days back in office.
“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 does seem to like what Trump’s policies are going to be, so we’ll just have to see if there’s some follow-through.”
The earnings season for the fourth quarter has gotten off to a strong start, with positive reports from companies like Netflix and major banks. However, American Airlines dampened the enthusiasm, with its stock falling more than 8% on Thursday after the company issued weak guidance for the future.
As investors digest the economic landscape, market momentum continues to be driven by Trump’s policy proposals and expectations for further growth in the coming months.