U.S. Stocks Surge as Investors Digest Trump's Davos Speech
Wall Street closed higher on Thursday, with the S&P 500 (^GSPC) achieving a fresh record high as investors responded to remarks by President Donald Trump at the World Economic Forum in Davos.
The broad-based index gained 0.53%, securing its first-ever closing high of 2025. The Dow Jones Industrial Average (^DJI) rose 0.92%, while the Nasdaq Composite (^IXIC) recovered from earlier losses to close with a moderate gain of 0.22%.
Investors were particularly focused on Trump's remote speech, where he addressed the global economy and his administration's trade policy. Among his key statements:
* He called for a reduction in interest rates.
* He urged OPEC to lower oil prices.
* He warned companies that they could face tariffs if they do not manufacture their products in America.
These remarks injected uncertainty into the market, which has been buoyed in recent weeks by expectations of less aggressive rate hikes from the Federal Reserve. The uncertainty surrounding tariffs could also weigh on sentiment in the coming days.
Other Market News:
* Nvidia (NVDA) shares remained flat after its supplier, SK Hynix, expressed concerns about semiconductor demand this year.
* American Airlines (AAL) stock tumbled 8% after the carrier forecast a surprise loss for its first quarter, citing rising expenses.
* Electronic Arts (EA) plunged 15% after it reported weaker-than-expected bookings for its video games.
* UnitedHealth Group (UNH) announced the appointment of Tim Noel as head of its broader insurance division, following the tragic killing of Brian Thompson.
International News:
* Bitcoin (BTC-USD) rose after Republican Senator Cynthia Lummis announced she will chair the Senate Banking Subcommittee on digital assets.
* Chip stocks fell across the board due to concerns about demand, as expressed by Nvidia's supplier SK Hynix.
Economic Data:
* Initial jobless claims for the week ended January 18 increased by 6,000 to 223,000.