By Sinéad Carew and Johann M Cherian
(Reuters) – 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 Federal Reserve’s pace of interest rate cuts.
The Fed is expected to leave interest rates unchanged for the first half of 2025, according to data compiled by LSEG.
Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, noted that the Fed, which has a policy meeting on Jan. 28-29, 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. “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.
According to preliminary data, the S&P 500 gained 32.07 points, or 0.53%, to end at 6,118.44 points, while the Nasdaq Composite gained 42.33 points, or 0.21%, to 20,051.67. The Dow Jones Industrial Average rose 400.76 points, or 0.91%, to 44,557.49.
Power utilities stocks including Constellation Energy and Vistra Corp rose after Trump told the World Economic Forum that the United States needs double the energy it has to power rapidly emerging AI operations.
Technology stocks took a breather after rallying 2.5% on Wednesday following Trump’s announcement of a private-sector $500-billion investment in AI infrastructure.
On the economic data front, a Labor Department report showed weekly jobless claims stood at 223,000, compared with expectations of 220,000.
In earnings, GE Aerospace stock advanced after it forecast 2025 profit above estimates and shares in health insurer Elevance rose after beating estimates for fourth-quarter profit.