The benchmark S&P 500 rose to a record closing high on Thursday, as investors assessed a mixed bag of corporate earnings and digested comments from President Donald Trump, including a call for cuts in interest rates and oil prices.
At the World Economic Forum in Davos, Switzerland, Trump demanded that OPEC lower oil prices and that central banks reduce interest rates, while he warned global business leaders they will face tariffs for products made outside of the U.S.. While investors have been cautiously monitoring Trump’s comments about tariffs, they “like the idea of interest rates coming down, of oil prices coming down,” said Lindsey Bell, chief strategist at 248 Ventures.
“All in all, the market is optimistic the more they hear about Trump policies. We’re just seeing a reflection of that optimism,” said Bell.
However, investors have been concerned that tariffs could add to inflation pressures and slow the pace of interest rate cuts by the U.S. Federal Reserve.
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The Fed is expected to leave interest rates unchanged next week at its first policy meeting of the year.
Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, said the Fed is expected to base rate decisions on economic data rather than presidential demands.
“I don’t think the Fed is going to pay much attention to this,” said Tuz, referring to Trump’s comments on rates. “They’re looking at the data and they’re going to make their decision based on what they see.”
Tuz saw Thursday’s moves as a mix of reactions to earnings reports and new Trump administration policies.
All three of Wall Street’s major indexes scored their fourth straight day of gains.
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The S&P 500 gained 32.34 points, or 0.53%, to 6,118.71, The S&P 500 registered its first closing record since Dec. 6 after narrowly missing the milestone on Wednesday.
The Dow Jones Industrial Average rose 408.34 points, or 0.92%, to 44,565.07 and the Nasdaq Composite gained 44.34 points, or 0.22%, to 20,053.68.
All 11 S&P 500 sectors ended with gains,
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