Market Momentum Continues as Trump Addresses World Economic Forum
The US stock market ended Thursday on a high note, with the S&P 500 securing its first all-time closing high of 2025. The Dow Jones Industrial Average and Nasdaq Composite also saw significant gains, up 0.9% and 0.2%, respectively. Investors were closely watching President Trump’s remote speech at the World Economic Forum in Davos, where he discussed trade policy and interest rates.
Trump’s Remarks on Trade and Interest Rates
During his speech, Trump emphasized the importance of manufacturing in the US, stating that companies that don’t produce in America will have to pay a tariff. He also expressed his intention to ask OPEC to lower oil prices, citing the need to end the Russia-Ukraine war. Additionally, Trump demanded that interest rates drop immediately, both in the US and globally.
Earnings Season Continues
Several major companies reported earnings on Thursday, including American Airlines, which forecast a surprise loss for the first quarter. Electronic Arts also saw its stock tumble 15% after missing analyst expectations. On the other hand, GE Aerospace exceeded fourth-quarter estimates and announced a $7 billion stock buyback program.
Chip Stocks Take a Hit
Nvidia supplier SK Hynix’s comments on semiconductor demand uncertainty led to a decline in chip stocks across the board. The company’s head of finance expressed caution about the year ahead, citing inventory adjustments and geopolitical risks.
UnitedHealth Group Announces Leadership Change
UnitedHealth Group promoted Tim Noel to lead its broader insurance division, following the death of executive Brian Thompson. Noel brings extensive experience to the role, having joined the company in 2007.
CNN Undergoes Restructuring
CNN is laying off 6% of its workforce as part of a digital-first transformation. The company plans to invest $70 million in its revamp, which includes a new direct-to-consumer streaming product and a focus on premium digital ad experiences.
Home Purchase Agreements Fall Through at Record Rate
According to Redfin, nearly 40,000 home purchase agreements were canceled in December, the highest percentage of any December on record. High mortgage rates and housing costs are causing buyers to lose faith, with many opting to rent instead.
Bitcoin Sees Gains
Bitcoin rose after Republican Sen. Cynthia Lummis announced she would chair the Senate Banking Subcommittee on digital assets. The token moved up to about $105,000, with Lummis expressing interest in creating a strategic bitcoin reserve.
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