Stocks Get Trump Boost as S&P 500 Tops 6,100: Markets Wrap – Yahoo Finance
(Bloomberg) — Stocks closed at record highs as oil prices fell after President Donald Trump urged OPEC to lower oil prices and vowed to push for interest rate cuts.
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Low oil prices, which tend to ease inflation concerns, pushed down policy-sensitive two-year bond yields. Approximately 320 stocks in the S&P 500 index rose, surpassing the milestone of 6,100 stocks. Tech stocks, which had weighed on the market through most of the session, rallied in the final stretch of Wall Street trading. President Trump said he has signed executive orders related to artificial intelligence and virtual currencies.
Fawad Razaqzada of City Index and Forex.com said traders who were hoping for new insight on President Trump's trade policy expressed a soft tone on tariffs, which “unnerved investors. It was said to have helped “soothe” him.
“Rightly or wrongly, President Trump wants a positive supply shock in the energy sector,” said Neil Dutta of Renaissance Macro Research. “As a result, inflation expectations will fall, which in turn will lower interest rates.”
The S&P 500 rose 0.5%. The Nasdaq 100 rose 0.2%. The Dow Jones Industrial Average rose 0.9%. Bloomberg's Magnificent Seven index rose 0.2%. The Philadelphia Stock Exchange's semiconductor stock index fell 0.4%. The Russell 2000 added 0.5%.
The Bloomberg Dollar Spot Index fell 0.2%. The yen rose as the Bank of Japan was expected to raise its benchmark interest rate to the highest rate in 18 years on Friday. The 10-year Treasury yield rose 3 basis points to 4.65%.
“If President Trump is able to come up with a pro-growth package as inflationary pressures ease, we could see a rotation into cyclical stocks, small-cap stocks, and non-U.S. assets,” said Hal Reynolds of Los Angeles Capital Management. is high,” he said.
However, given the increased level of policy risk, the firm's Dynamic Alpha Stock Selection Model continues to have a slight preference for large-cap companies around the world whose fundamentals justify higher returns.
The stock market is in “calm before the storm mode” ahead of next week's Federal Reserve press conference and the start of earnings season for big tech companies, according to Main Street Research's James Demmert. , “Both are likely to cause market volatility.” ”
Demmert sees further consolidation and correction in stock prices as an opportunity for investors.
“We are in the early stages of an AI and technology-driven business cycle and bull market, about two years in now and likely to continue for another five years,” he said.
The S&P 500's recent rally missed a key component: inflows from big money managers. For those betting on further gains, this is a welcome development.
A measure of combined positioning among rules-based and discretionary investors fell to a two-month low, according to Deutsche Bank data. Commodity trading advisors also cut long-term exposures to stocks to levels last seen following the market crash in August, according to data compiled by Goldman Sachs Group Inc.'s trading desk.
From a contrarian perspective, such skepticism bodes well for stock market bulls. Because if the biggest fears don't materialize, it could mean more dry powder for buying stocks in the future.
“Near-term volatility remains to be expected,” said Mark Hefele of UBS Global Wealth Management. “But we also think there is room for further upside for U.S. stocks as growth momentum continues.”
Company highlights:
American Airlines Group Inc. disappointed investors following a series of bullish forecasts from other major airlines, warning of an unexpected loss at the start of the year as it battles a rebound in business travel and high costs.
Alaska Airlines Group beat Wall Street's expectations for a better-than-expected end to 2024 and is poised for a better-than-expected start to the new year, a boost for airlines planning major international expansion.
Electronic Arts has warned that its financial results will be lower than expected due to poor sales of two titles released during the holidays.
General Electric Co.'s profits and sales beat Wall Street expectations in the final months of the year, as the jet engine maker grappled with supply chain constraints and leveraged a large maintenance backlog.
Union Pacific's quarterly profit beat Wall Street expectations, and the railroad said its outlook for 2025 remained unchanged despite the mixed economic outlook.
Freeport-McMoRan's revenue forecast was below analyst expectations, offsetting the impact of better-than-expected results in the previous quarter.
Elevance Health's fourth-quarter medical costs were lower than expected, easing investor concerns and helping the insurer meet its profit expectations.
ByteDance is considering a deal to continue operating TikTok without selling its U.S. operations, board member Bill Ford said.
This week's main events:
Bank of Japan policy meeting, Friday
Eurozone HCOB Manufacturing and Services PMI, Friday
University of Michigan Consumer Sentiment, Used Home Sales, S&P Global Manufacturing PMI, Friday
The main movements in the market are:
stock
As of 4 p.m. New York time, the S&P 500 was up 0.5%.
Nasdaq 100 rose 0.2%
The Dow Jones Industrial Average rose 0.9%.
MSCI World Index rose 0.5%
Bloomberg Magnificent 7 Total Return Index rose 0.2%
Philadelphia Stock Exchange Semiconductor Index fell 0.4%
Russell 2000 index rose 0.5%
currency
The Bloomberg Dollar Spot Index fell 0.2%.
The euro was almost unchanged at $1.0418.
The British pound rose 0.3% to $1.2354.
The Japanese yen rose 0.3% to 156.00 yen to the dollar.
cryptocurrency
Bitcoin fell 1.1% to $102,897.7.
Ether fell 0.6% to $3,237.47.
bond
The 10-year Treasury yield rose 3 basis points to 4.65%.
Germany's 10-year bond yield rose 2 basis points to 2.55%.
UK 10-year bond yield is almost unchanged at 4.64%
merchandise
West Texas Intermediate crude oil fell 1.6% to $74.25 a barrel.
Spot gold fell 0.1% to $2,753.69 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Robert Brand, Julian Ponthus, Divya Patil, Catherine Bosley and Rob Verdonk.
