Dow surges 408 points; Nasdaq gains as markets react to Trump’s economic and energy policy remarks
On Thursday, the S&P 500 reached record highs, driven by US President Donald Trump’s calls for reduced interest rates and cheaper oil prices, as reported by CNBC.
The index rose 0.53 percent, achieving an all-time intraday high for the second consecutive session and closing at 6,118.71. This surpassed the prior record of 6,090.27 set in early December.
The Dow Jones Industrial Average advanced 408.34 points, or 0.92 percent, to end the day at 44,565.07.
The Nasdaq Composite gained 0.22 percent, closing at 20,053.68. All three major indexes recorded their fourth consecutive session of gains.
Markets reacted positively to Trump’s remarks during his virtual address to the World Economic Forum. He stated that he would “demand that interest rates drop immediately” and announced plans to ask Saudi Arabia to lower oil prices.
Following his comments, short-term Treasury yields fell, and crude oil prices turned negative.
Investor optimism this week has been buoyed by expectations of potential tax cuts, deregulation, and steady economic growth. Although tariffs remain a concern, investors welcomed the lack of formal action on levies during Trump’s early days back in the White House.
Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report, remarked that while Trump cannot directly control interest rates, “the market likes to hear that kind of stuff.”
He added that the market appears optimistic about Trump's policies but noted, “we’ll just have to see if there’s some follow-through.”
The fourth-quarter earnings season added to the momentum. Companies such as Netflix and major banks delivered strong reports.
However, American Airlines weighed on the market with an 8 percent drop in its stock price after issuing weak guidance.
