Trump’s comments lifted the S&P 500 to new highs.
U.S. President Donald Trump speaks via video conference at the annual meeting of the World Economic Forum in Davos on January 23, 2025.
Fabrice Coffreni Afp | Getty Images
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What you need to know today
Bank of Japan rate hike
Bank of Japan Friday The rate rose by 25% to 0.5%, the highest level since 2008. Following the decision, Japanese yen It strengthened to 155.3 against the US dollar at 1:30pm Singapore time. Tokyo One earlier on Friday Report Core inflation in the country rose 3% in December to a 16-month annualized pace, in line with expectations from a Reuters poll.
Register close to the S&P
of S&P 500 It closed at a new high on Thursday as investors liked what they heard from Trump about rate cuts. All major US metrics are on a four-day winning streak. Positive Wall Street sentiment lifted Asian markets on Friday. Hong Kong Hang Seng Index Jumped more than 2%, but the Japanese Nikkei 225 After going up the stairs, edge it.
Trump’s Davos address
US President Donald Trump gave a speech World Economic Forum Almost on Thursday in Davos, Switzerland. In his speech, Trump said that he “demands that interest rates be reduced immediately”, Saudi Arabia and OPEC “asked for oil prices to be reduced”, saying that the trade relationship between the European Union and the United States is very unfair.
“I like Xi a lot,” Trump said
Trump said Thursday that he “loves” Chinese President Xi Jinping. He floated the idea of working with Xi to end the war in Ukraine. On the other hand, a survey conducted by the American Chamber of Commerce in China announced Thursday that 30 percent of American companies in China are accelerating their plans to relocate manufacturing or sourcing, which is the highest proportion since 2022.
Crypto Order Signed by Trump
Cryptocurrency advocates got another boost from Trump after he signed an executive order to promote the growth of cryptocurrencies in the US. One of the critical components is the creation of a working group that considers the national digital asset inventory.
Boeing is incurring huge losses.
Boeing It said Thursday it posted a fourth-quarter loss of about $4 billion, or $5.46 per share. Revenue will likely come in at $15.2 billion, lower than LSEG’s estimates. Boeing has not reported an annual profit since 2018. Airline 2024 began with a mid-air disaster and ended with a massive strike and layoffs.
(PRO) Fink opposes pessimism in Europe
BlackRock CEO Larry Fink said there was “serious concern” at Davos about Europe’s future. However, Fink told CNBC on Thursday that things could be “near the bottom” — and explains why he takes that view.
Bottom line
Markets should run on numbers: past performance, profit forecasts, return on equity. But as Trump’s virtual speech to the World Economic Forum on Thursday showed, words are equally powerful in their ability to move markets.
Price of American raw and global scale Brent “We will ask Saudi Arabia and OPEC to lower oil prices,” Trump said.
And the 2-year Treasury yield, which tends to track short-term interest rates, edged lower and stocks rallied after Trump said “I’m going to call for those interest rates to come down immediately.”
In fact, the S&P 500 It added 0.53% to close at a high of 6,118.71. The last all-time closing high was 6,090.27 in early December. of Dow Jones Industrial Average It rose 0.92% Nasdaq CompositeIt gained 0.22%. It was the fourth consecutive session in the green for all three indexes.
But unlike numbers – if they’re concrete (most of the time, anyway) – words can be very attractive.
Trump’s Davos speech contained some ostensibly positive lines (he called on OPEC to lower oil prices, asked central banks to cut interest rates, and repeated earlier promises to cut taxes and regulation) but little progress was under his control. Crisafulli, founder of Vital Knowledge, said in a memo.
This does not mean that Trump will not fulfill his declaration. But it’s not wise to bank on opinions that aren’t backed up by concrete action.
On the other hand, there are words that have policy weight behind them and should be taken seriously by investors.
The US Federal Reserve will meet next week. Accordingly, the possibility of price reduction is close to zero. The CMEGroup FedWatch toolJames Demert, chief investment officer at Main Street Research, said chairman Jerome Powell said in a press release that it “could create market volatility.”
Learning what to listen for can be as important to investors as crunching the numbers.
— CNBC’s Alex Haring and Jesse Pound contributed to this report.