The S&P 500 climbed to a fresh record on Thursday, driven by President Donald Trump’s calls for immediate interest rate cuts and cheaper oil prices during his virtual address to the World Economic Forum.
Investors cheered the prospect of pro-growth policies and economic resilience, sending the Dow Jones Industrial Average up 343 points, or 0.8%, while the S&P 500 added 0.2%.
However, the Nasdaq Composite slipped 0.2% as major tech names like Nvidia, Tesla, and Amazon faced declines.
Trump’s remarks sparked a modest market rally, particularly after he stated his intent to “demand that interest rates drop immediately” and urged Saudi Arabia to lower oil prices, which briefly pushed crude oil into the red.
Short-term Treasury yields also declined, reflecting the market’s reaction to the president’s aggressive economic stance.
Earnings and policies drive optimism
The market has gained momentum this week on expectations of tax cuts, deregulation, and signs of robust economic growth under the new Trump administration.
While trade tariffs remain a potential headwind, investors are reassured by the absence of immediate action on levies during Trump’s initial days back in office.
Adding to the market’s optimism, strong fourth-quarter earnings reports from companies like Netflix and major banks boosted sentiment.
However, a disappointing outlook from American Airlines weighed on the mood, with the stock plummeting over 8% after issuing weak guidance.
Oracle soars on AI partnership
Oracle shares surged nearly 15% this week, following Trump’s announcement of a joint venture involving the company, SoftBank, and OpenAI to accelerate artificial intelligence development.
The stock is set for its best weekly performance since December 2021, when it gained more than 16%.
Year-to-date, Oracle shares are up 11%, reflecting growing investor confidence in its AI-driven initiatives.
Energy sector underperforms
Despite gains in the broader market, energy stocks struggled. The S&P 500 energy sector is down 2% this week, marking its worst performance since December 20, when it shed over 5%.
The decline also snaps a four-week winning streak for the sector, weighed down by falling crude oil prices and concerns over Trump’s call for lower energy costs.
With corporate earnings, economic data, and Trump’s pro-growth policies shaping sentiment, investors are keeping a close watch on how these factors will influence markets in the coming weeks.
As the S&P 500 pushes higher, challenges such as sectoral divergence and tariff uncertainties remain potential hurdles.
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