Market Volatility: Stocks Teeter as Trump Addresses World Economic Forum
The US stock market experienced a mixed day on Thursday, with the S&P 500 hovering near record levels as investors awaited President Trump’s remarks at the World Economic Forum in Davos. The broad-based index rose nearly 0.2%, putting it on the cusp of an all-time closing high. Meanwhile, the Dow Jones Industrial Average traded 0.6% higher, with a record not far off.
Tech Stocks Struggle as Chip Demand Uncertainty Weighs
The Nasdaq Composite fell around 0.3% as tech stocks struggled to regain momentum. Nvidia shares dropped after its supplier SK Hynix flagged uncertainty about chip demand this year, which also weighed on other related stocks.
Trump’s Davos Address: Tariffs, OPEC, and Interest Rates
In his remote speech at the World Economic Forum, President Trump addressed trade policy, warning companies that if they don’t manufacture in the US, they will have to pay a tariff. He also said he will ask OPEC to bring down the price of oil and demanded that interest rates drop immediately.
Earnings Season: Winners and Losers
GE Aerospace shares jumped nearly 7% after the company exceeded fourth-quarter estimates on both revenue and earnings. American Airlines stock tumbled after forecasting a surprise loss for the first quarter. Electronic Arts shares plummeted 15% after the game publisher said quarterly bookings fell short of analyst expectations.
Housing Market: Deals Fall Through at Record Rate
Deals to purchase a home fell through at a record rate in December as high mortgage rates and housing costs caused buyers to lose faith. According to Redfin, nearly 40,000 home purchase agreements were canceled in December, equal to 16.2% of homes that went under contract that month.
Bitcoin Rises on Regulatory News
Bitcoin rose after Republican Sen. Cynthia Lummis said she will chair the Senate Banking Subcommittee on digital assets. The token moved up to about $105,000 at around 10:50 a.m. ET.
Artificial Intelligence: A Double-Edged Sword
Leaders at the World Economic Forum agree that artificial intelligence is powerful and starting to impact business, but they can’t agree on whether AI is already out of control. While some see AI as a game-changer, others worry about its potential risks and the need for regulation.
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