Following President Donald Trump’s appeal for lower interest rates and cheaper oil prices, the S&P 500 surged to all-time highs on Thursday.
For the second consecutive day, the broad market index hit an all-time intraday high, rising 0.53%. At 6,118.71 at the end of the day, the benchmark surpassed its previous closing high of 6,090.27 set in early December.
The Nasdaq Composite increased 0.22% to 20,053.68 while the Dow Jones Industrial Average increased 408.34 points, or 0.92%, to 44,565.07. All three of the major indices had their fourth consecutive winning session on Thursday.
After Trump declared in a virtual speech to the World Economic Forum on Thursday that he would insist on an immediate reduction in interest rates, stocks surged. Additionally, the president stated that he would request Saudi Arabia to reduce the price of oil, which caused crude to plummet. Short-term Treasury yields dropped after Trump’s remarks.
This week, the stock market has benefited from signals of robust economic growth and enthusiasm over possible tax cuts and deregulation under Trump. Even while tariffs are still a burden, investors have been happy that Trump hasn’t taken official action on them in his first few days in office.
Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report, stated that although he truly has no power over interest rates, the market enjoys hearing such things. We’ll just have to wait and see if Trump’s proposals are implemented, but so far, the market seems to appreciate them.
With good news from Netflix and major banks, the fourth-quarter earnings season is getting off to a good start. However, after the firm released dismal expectations on Thursday, American Airlines’ stock fell more than 8%, dampening that enthusiasm.
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