United States Equity Markets Surge on Thursday, with S&P 500 Setting Record High
U.S. stock markets rallied on Thursday, with the S&P 500 index reaching a fresh all-time closing high amid investor anticipation of President Donald Trump's address at the World Economic Forum in Davos.
Key Market Indicators
* S&P 500 (^GSPC): +0.53%, closing at 2025.
* Dow Jones Industrial Average (^DJI): +0.92%
* Nasdaq Composite (^IXIC): +0.22%
Trump's Davos Speech in Focus
Investors eagerly awaited President Trump's remote speech at Davos, where he addressed trade policy. Trump stated that he would "demand that interest rates drop immediately" and urged OPEC to reduce oil prices. He also warned companies of potential tariffs if they did not manufacture products in the United States.
Economic Data and Earnings
U.S. jobless claims increased by 6,000 to 223,000 for the week ended January 18th, slightly higher than analysts' expectations.
Several companies announced earnings results:
* American Airlines (AAL) forecast a surprise loss for the first quarter, causing its stock price to decline.
* GE Aerospace (GE) exceeded revenue and earnings estimates for the fourth quarter and announced a $7 billion buyback program.
* Electronic Arts (EA) reported lower quarterly bookings, leading to a drop in its share price.
* CNN announced layoffs of 6% of its workforce as part of a digital transformation strategy.
Individual Stock Performance
* Nvidia (NVDA): Flat due to concerns about chip demand raised by its supplier SK Hynix.
* UnitedHealth Group (UNH): Rose after announcing the promotion of Tim Noel to lead its broader insurance division.
* Electronic Arts (EA): Fell 15% on disappointing quarterly bookings.
* American Airlines (AAL): Declined after forecasting a loss for the first quarter.
* Homebuyers backed out of deals at a record rate in December due to high mortgage rates and housing costs, according to data from Redfin.