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%, notching an all-time intraday high for the second straight session. The benchmark finished the day at 6,118.71, surpassing its prior all-time closing high of 6,090.27 recorded in early December.
The Dow Jones Industrial Average advanced 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 straight winning session for all three major indexes.
Stocks took a leg up after Trump said Thursday in a virtual address to the World Economic Forum that he would “demand that interest rates drop immediately.” The president also said he would ask Saudi Arabia to lower the price of oil, which pulled crude into the red. Short-term Treasury yields fell following Trump’s comments.
The stock market has gotten a boost this week from excitement about potential tax cuts and deregulation under Trump, as well as signs of resilient economic growth. While tariffs remain an overhang, investors have been pleased with the lack of formal action on these levies during Trump’s first days back in the White House.
“He really can’t control interest rates, but the market likes to hear that kind of stuff,” said Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report. “So far, the market does seem to like what Trump’s policies are going to be, so we’ll just have to see if there’s some follow through.”
The fourth-quarter earnings season is also off to a strong start, with Netflix and big banks offering positive reports. But American Airlines poured some cold water on that enthusiasm, with the stock tumbling more than 8% on Thursday after the company issued weak guidance.
