US Market Reaction To Donald Trump's Davos Speech: S&P 500 Hits Record High, Dow Jones, Nasdaq Rally Too

US Market Updates: Wall Street cheered on January 23, as their 47th President pitched for 'Make In US' initiatives. During his speech in World Economic Forum at Davos, Trump urged companies to manufacture their products in the US and vowed to offer tax relief or else face tariffs. In his speech, Trump also revealed his plan to lower interest rates and ask OPEC to lower oil prices. Overall, the US market reacted positively to Trump's speech.

Dow Jones: The Dow Jones Industrial Average or DJIA closed at 44,565.07, up by 408.34 points or 0.92%, which was near its day's high.

S&P 500: This index closed at 6,118.71, higher by 32.34 points or 0.53%, also near its day's high. However, S&P touched its new all-time high of 6,118.73.

Nasdaq Composite Index: The tech-heavy index ended at 20,053.68, up by 44.34 points or 0.22%, which was around its day's high too.

Nasdaq and Dow Jones were steadily closing the gap towards their all-time highs of 20,204.58 and 45,073.63 respectively.

On the latest performance, Trading Economics data stated that US stocks closed higher on Thursday, with the S&P 500 reaching a new record high, surpassing the 6,100 threshold, the Dow gaining over 400 points, and the Nasdaq 100 edged 0.3% higher. Investor sentiment was lifted by President Trump's virtual address to the World Economic Forum, where he called for immediate interest rate cuts and urged Saudi Arabia to lower oil prices.

Trading Economics data added, strong earnings from GE and Union Pacific, which rose 6.6% and 5.2%, respectively, helped lift industrial stocks, while defensive sectors outperformed after weaker performance the day before. However, American Airlines' disappointing guidance weighed on sentiment, with shares falling 8.7%. Despite lingering concerns over tariffs on Canadian aluminium, optimism surrounding Trump's economic policies, resilient corporate earnings, and a buoyant economic outlook boosted investor confidence, though caution remained due to potential volatility ahead of next week's Federal Reserve meeting.

Donald Trump's Davos Speech

Donald J Trump makes a special address at Davos just three days after being inaugurated as the 47th president of the US, as per the World Economic Forum.

As per the main statement released on the forum, Trump said his administration is working to fix the 'economic chaos' and will make the US 'stronger, wealthier and more united than ever before'. He vowed to bring down oil and gas prices, eliminate regulations, introduce tax cuts for domestic producers and bring in tariffs on foreign goods.

Trump said, "Our country will soon be stronger, wealthier and more united than ever before, and the entire planet will be more peaceful and prosperous as a result of this incredible momentum, and what we're doing and going to do." Adding he said, "My administration is acting with unprecedented speed to fix the disasters we've inherited from a totally inept group of people, and to solve every single crisis facing our country."

Furthermore, Trump said, "The United States has the largest amount of oil and gas of any country on Earth, and we're going to use it. Not only will this reduce the cost of virtually all goods and services, it will make the United States a manufacturing superpower and the world capital of artificial intelligence and crypto."

Moreover, Trump said, "To further unleash our economy, our majorities in the House and Senate - which we also took, along with the presidency - are going to pass the largest tax cut in American history, including massive tax cuts for workers and families, and big tax cuts for domestic producers and manufacturers."

He added, "We're bringing them down very substantially, even from the original Trump tax cuts. But if you don't make your product in America, which is your prerogative, then very simply you will have to pay a tariff - differing amounts, but a tariff which will direct hundreds of billions of dollars and even trillions of dollars into our Treasury to strengthen our economy and pay down debt."

Under the Trump administration, he said, "there will be no better place on Earth to create jobs, build factories, or grow a company than right here in the good old USA. Already Americans' economic - you can see, I think, maybe even in your in your wonderful, wonderful room that you're all gathered together, so many of my friends - but Americans'... the economic confidence is soaring like we haven't seen in many, many decades. Maybe not at all."

Donald Trump is the President of United States for the second time now!