Stocks rise as President Trump advocates for lower interest rates and oil prices to boost the economy
U.S. stocks rallied Thursday, with the S&P 500 hitting a fresh record high, as President Donald Trump called for lower interest rates and cheaper oil during a virtual address to the World Economic Forum. His comments, aimed at boosting the economy, helped fuel a positive market trend despite some mixed corporate earnings news.
The broad S&P 500 index closed at a record 6,118.71, climbing by 0.53%, or 32.24 points. Meanwhile, the Dow Jones Industrial Average surged by 0.92%, adding 408.34 points to finish at 44,565.07. The tech-heavy Nasdaq also saw a gain, rising 0.22%, or 44.34 points, to reach 20,053.68.
In his speech, Trump urged for immediate action to lower interest rates, emphasizing the need for better economic conditions. He also made a bold request to oil-producing nations like Saudi Arabia to reduce the price of oil, which fell by 1.6% to $74.24 per barrel. The President’s remarks gave investors some relief, particularly following a period of uncertainty about tariffs during his early days in office.
U.S. President Donald Trump spoke virtually to global business leaders at the World Economic Forum, asking them to manufacture their products in America while announcing he will ask Saudi Arabia to bring down oil prices.
The president also said he will demand that interest rates… pic.twitter.com/91Z3NA5yvP— The National Desk (@TND) January 23, 2025
The stock market’s performance on Thursday extended gains from earlier in the week when traders welcomed Trump’s backpedaling from widespread tariff threats. This shift eased concerns about global trade tensions and added to investor optimism.
Despite the positive market momentum, some economic data caught attention. First-time jobless claims rose to 223,000, driven by the wildfires in California, while continuing claims hit the highest level since 2018 (excluding the pandemic era). While these numbers might signal longer job recovery times, the markets largely shrugged it off.
Good Morning from Joburg where Asia-Pacific markets climbed Friday, after the S&P 500 hit record highs overnight as U.S. President Donald Trump called for lower interest rates and cheaper oil prices. The Bank of Japan raised policy rate by 25 basis points to 0.5% — the highest… pic.twitter.com/4m8nSMPedZ
— Nick Kunze (@NickKunze2) January 24, 2025
On the corporate front, investors were mixed on earnings reports. American Airlines issued an unexpected warning of a potential first-quarter loss, sending its shares down 8.74%. Meanwhile, Alaska Air Group reported better-than-expected results, with its shares rising by more than 2%.
In the tech sector, Electronic Arts shares fell 16.7% after the company lowered its revenue forecast, partly due to lower engagement with its soccer-themed video games. Meanwhile, chipmakers like Nvidia saw losses after South Korea’s SK Hynix warned of uncertain demand for its memory products.
Bitcoin also remained volatile, dipping by 0.87% to $102,657.90 despite positive comments from Goldman Sachs CEO David Solomon, who called Bitcoin an “interesting speculative asset.” Solomon further mentioned that while his company is researching Bitcoin’s underlying technology, current regulations prevent more direct involvement with the cryptocurrency market.
In other crypto news, President Trump signed a new executive order focused on digital assets, creating a working group to advise on digital asset policies. The group will include representatives from key federal agencies, including the Treasury Department and the Securities and Exchange Commission, paving the way for clearer crypto regulations in the U.S.
Overall, Thursday’s trading day marked another positive step for the stock market, with investors looking ahead to more potential economic policy changes and corporate earnings reports. As Trump continues to push for lower interest rates and oil prices, Wall Street seems to be taking a more optimistic outlook in the near term.