The S&P 500 rallied to record highs on Thursday after President Donald Trump called for lower interest rates and cheaper oil prices.
The broad market index added 0.53%, hitting an all-time high for the second straight session. The benchmark ended the day at 6,118.71, surpassing the previous closing high of 6,090.27 recorded in early December.
The Dow Jones Industrial Average rose 408.34 points, or 0.92%, to 44,565.07, while the Nasdaq Composite rose 0.22% to 20,053.68. Thursday marked the fourth winning session for all three major indexes.
Stocks gained a leg after Trump said in a virtual address to the World Economic Forum on Thursday that he would “demand that interest rates come down immediately.” The president also said he would ask Saudi Arabia to lower the price of oil. Short-term Treasury yields decreased following Trump’s comments.
Stock markets are getting a boost this week from excitement about potential tax cuts and deregulation under Trump and signs of resilient economic growth. Tariffs remain, but investors are pleased with the lack of formal action on these taxes during Trump’s first days in the White House.
“He can’t really control interest rates, but the market likes to hear things like that,” said Larry Tentarelli, chief technical strategist for the Blue Chip Daily Trend Report. “So far, markets seem to like what Trump’s policies are going to be, so we’ll have to see if there’s any follow-through.”
The fourth quarter earnings season is also off to a strong start, with Netflix and major banks providing positive reports. But American Airlines poured cold water on that enthusiasm, sending its stock tumbling more than 8% on Thursday after the company issued weak guidance.
