Trump’s demands push the S&P to a new record

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Trump’s address in Davos
US President Donald Trump addressed World Economic Forum in the Swiss Davos, literally on Thursday. In his speech, Trump said he would “demand that interest rates be reduced immediately,” ask Saudi Arabia and OPEC to “lower the price of oil,” and called Trade relations of the European Union with the USA very unfair.

Record close for S&P
The S&P 500 closed at a new high on Thursday as investors liked what they heard from Trump regarding rate cuts. All major US benchmarks are in a four-day streak. European regional Stoxx 600 index added 0.44%. Puma shares fell about 23% after it missed full-year 2024 profit expectations and revealed cost-cutting plans on Wednesday.

Crypto order signed by Trump
Cryptocurrency advocates got another boost from Trump on Thursday after he signed it executive order to promote the advancement of cryptocurrencies in the US Most of the order is aimed at establishing technology and rules around crypto. One of the key pieces is the creation of a task force to look at the national inventory of digital assets.

Boeing predicts big losses
Boeing he said on Thursday that it was likely lost about $4 billion in the fourth quarteror a loss of $5.46 per share. Revenue is likely to be $15.2 billion, which is lower than LSEG’s estimates. Boeing has not reported annual earnings since 2018. The aircraft manufacturer began 2024 with an accident in the air and finished with crippling labor strike and dismissals.

[PRO] Coming back to Apple soon?
Apple’s the stock is headed for its fourth straight losing week and is down nearly 11% so far in January, while stocks more directly tied to AI, such as Nvidia and Oraclethey gathered. But it’s still the early days of artificial intelligence. Here’s why investors might they flock back to Apple in the middle of the year, wrote a Goldman Sachs analyst.

Price from American oil and global benchmark Brent lashed out at Trump, saying he would “ask Saudi Arabia and OPEC to lower the price of oil.”

And after Trump said he would “demand that interest rates come down immediately,” the two-year Treasury yield, which tends to track short-term interest rates, fell, while stocks rose.

Actually, S&P 500 it added 0.53% to close at a record high closing at 6,118.71. Its last all-time closing high was 6,090.27 in early December. The Dow Jones Industrial Average increased by 0.92% and Nasdaq Compositee received 0.22 percent. It was the fourth consecutive session in the green for all three indices.

But unlike numbers – which are factual (most of the time, anyway) – words can be capricious.

“Trump’s Davos speech contained some seemingly positive lines (he called on OPEC to lower oil prices, asked central banks for lower interest rates, and repeated previous promises to cut taxes and regulation), but there was very little incremental or under his control Adam Crisafulli, founder of Vital Knowledge, said in a note.

This does not mean that Trump will not implement his statements. However, it is unwise to rely on comments that are not based on concrete works.

On the other hand, there are some words that have the weight of politics behind them and that investors should take seriously.

The US Federal Reserve meets next week. Although the probability of a rate cut is then close to zero, according to CMEGroup’s FedWatch toolwhat Chairman Jerome Powell says at his press conference is “likely to cause market volatility,” according to James Demmert, chief investment officer at Main Street Research.

Learning what to listen for may therefore be as important to investors as deciphering the numbers.

— CNBC’s Alex Harring and Jesse Pound contributed to this report.