Stock market today: S&P 500 clinches first record close of 2025, Dow pops after Trump takes spotlight at Davos
Published On Jan 23, 2025, 4:03 PM
US stocks saw an upward trend on Thursday, with the S&P 500 reaching a new record close as investors reacted to President Trump's address at the World Economic Forum. Trump highlighted his intent to demand an immediate drop in interest rates and warned of tariffs for companies not manufacturing in the US. Despite the positive closing for major indices, tech stocks struggled, particularly Nvidia which faced pressure due to concerns about chip demand from its supplier. The jobless claims increased slightly, indicating a potential headwind for market sentiment. The overall tone of the market was optimistic, especially with earnings season on the horizon.
Stock Forecasts
SPY
Positive
The S&P 500 has shown strong upward movement recently, and Trump's economic statements might bolster market confidence. Investors may view the prospects of lower interest rates favorably, which typically supports stock prices.
NVDA
Negative
Given the warning about tariffs and the uncertainty expressed by Nvidia and its suppliers regarding demand, the tech sector might experience downward pressure in the short term. Nvidia specifically is reliant on robust demand for its chips, and any negativity from its suppliers could impact its stock.
AAL
Negative
American Airlines has issued a surprising loss forecast, which could lead to further declines in its stock price amid investor disappointment despite the previous strong revenue performance.
GE
Positive
GE Aerospace exceeded earnings expectations and provided a positive outlook for 2025 along with a significant buyback program, suggesting strong investor confidence going forward.
EA
Negative
Electronic Arts experienced a significant decline in stock price due to a cut in its bookings outlook, suggesting short-term challenges and negative sentiment around its future earnings.
XLE
Positive
With President Trump planning to exert influence on oil prices, this could affect oil-related stocks positively if successful. The focus on lowering OPEC prices may create bullish sentiment for related sectors.
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