S&P 500 Reaches Record Closing High Amid Earnings Reports and Trump Comments

On Thursday, the S&P 500 index achieved a record closing high, as investors responded to a mix of corporate earnings results and remarks from President Donald Trump. This surge came as Trump called for reductions in interest rates and oil prices during his address at the World Economic Forum in Davos, Switzerland.

Trump urged OPEC to lower oil prices and asked central banks to consider cutting interest rates. He also sent a warning to global business leaders about possible tariffs on products manufactured outside the United States.

Despite the concerns surrounding tariffs and their potential impact on inflation, Lindsey Bell, chief strategist at 248 Ventures, remarked that investors still find the idea of lower interest rates and falling oil prices appealing. Bell noted, "Overall, the market is optimistic with each mention of Trump’s policies. We’re seeing a reflection of that optimism in the markets."

Nevertheless, investors remain wary of how tariffs might affect inflation and could hinder the Federal Reserve's plans to cut interest rates at a faster pace. The Federal Reserve is anticipated to maintain current interest rates in its first policy meeting of the year next week, with some experts suggesting that the Fed will rely more on economic data rather than presidential requests in their decision-making process.

Peter Tuz, president of Chase Investment Counsel, commented, "I don't think the Fed is going to pay much attention to this. They're looking at the data and will make decisions based on their findings."

On Thursday, all three major U.S. stock market indexes posted gains for the fourth consecutive day. The S&P 500 advanced by 32.34 points, or 0.53%, closing at 6,118.71, marking its first record closing high since December 6 of the previous year.

The Dow Jones Industrial Average rose by 408.34 points, or 0.92%, to 44,565.07, while the Nasdaq Composite increased by 44.34 points, or 0.22%, to 20,053.68. All 11 sectors of the S&P 500 closed higher, with healthcare leading the charge with a gain of about 1.35%, followed closely by industrials, which rose 0.96%.

Moreover, the banks index within the S&P 500 climbed by 0.73%, previously reaching a record high earlier in the day. Although the utilities sector experienced some fluctuations, it ultimately closed up 0.47%. This sector saw notable performance from power utility companies after Trump stated that the U.S. requires double the energy to support rapidly growing AI operations.

Specifically, Constellation Energy shares increased by 4.1%, AES Corp rose by 3.6%, and Vistra Corp climbed by 2.7%.

In the technology sector, which lagged behind with just a 0.12% increase after a remarkable rise of 2.5% the day before, responses to Trump's announcement regarding a $500 billion private-sector investment in AI infrastructure were noted.

From the economic front, the Labor Department reported weekly jobless claims at 223,000, slightly above the expected 220,000. In terms of corporate earnings, defense contractor GE Aerospace saw a 6.6% surge in its stock after forecasting profits for 2025 that surpassed estimates. Additionally, shares of health insurer Elevance rose by 2.7% after exceeding profit expectations for the fourth quarter.

However, some companies did face difficulties. Shares of Electronic Arts dropped by 16.7% following a reduction in its annual booking forecast, while American Airlines' stocks fell by 8.7% after announcing its 2025 profit predictions were below expectations.

Trading volume on U.S. exchanges registered at 13.54 billion shares, which is below the 20-session average of 14.83 billion. In terms of market breadth, advancing issues outnumbered declining ones by a 1.45-to-1 ratio on the NYSE, with 255 new highs and 52 new lows recorded. On the Nasdaq, 2,584 stocks advanced while 1,807 declined, maintaining a similar outperformance ratio.

Overall, the S&P 500 saw 32 new 52-week highs and six new lows, whereas the Nasdaq Composite recorded 77 new highs and 116 new lows.

S&P500, records, Trump