GLOBAL MARKETS: New Record for S&P 500 Index on Wall Street

On Wall Street, the S&P 500 index reached a record level on Thursday as investors analyze corporate earnings and statements from President Donald Trump, who among other things called for a reduction in interest rates and oil prices.

The Dow Jones increased by 0.92 percent to 44,565 points, while the S&P 500 rose by 0.53 percent to 6,118 points, and the Nasdaq index by 0.22 percent to 20,053 points.

The rise of these indices for the fourth consecutive day and the new record level of the S&P is attributed to investor optimism, after Trump stated in his address to participants at the World Economic Forum in Davos that he would ask OPEC to lower oil prices and central banks to reduce interest rates. He also warned business leaders that they would face U.S. tariffs on products if they were produced outside the U.S.

While investors cautiously monitor Trump’s statements regarding tariffs, “they like the idea of lowering interest rates as well as oil prices,” says Lindsey Bell, a strategist at investment firm 248 Ventures.

– Overall, the market is optimistic the more it hears about Trump’s policies. We are just seeing a reflection of that optimism in the market – said Bell.

However, investors fear that tariffs could intensify inflationary pressures and slow the pace of interest rate cuts by the U.S. central bank.

The Fed is expected to maintain interest rates at current levels at its meeting next week. Peter Tuz, president of Chase Investment Counsel, believes that the Fed will base its interest rate decisions on economic data rather than on President Trump’s demands.

– I don’t think the Fed will pay too much attention to that. They look at the data and will make a decision based on what they see – said Tuz.

European stock prices also rose yesterday. The London FTSE index increased by 0.23 percent to 8,565 points, while the Frankfurt DAX rose by 0.74 percent to 21,411 points, and the Paris CAC by 0.70 percent to 7,892 points.