Trump’s Comments Bump S&P 500 to New High

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Bank of Japan rate hike
Bank of Japan on Friday Travel rates up 25 basis points to 0.5%the highest level since 2008. After the decision, Japanese Yen It strengthened to 155.3 against the US dollar as of 13:30 Singapore time. Earlier on Friday, Tokyo released to report It showed National core inflation rises to 16-month high of 3% In December every year according to the expectations of the Reuters survey.

Record close for the S&P
A S&P 500 closed at a fresh high on Thursday How investors liked what they heard from Trump on rate cuts. All major US benchmarks are on a four-day winning streak. Positive mood on Wall Street Asian markets rose on Friday. Hong Kong Hang the index jumped more than 2%, but in Japan Nikkei 225 After the speed hike.

Trump’s Davos Address
US President Donald Trump addressed it World Economic Forum in Davos, Switzerland, practically on Thursday. In his speech, Trump said he would “Demand that interest rates fall immediately “,” Ask Saudi Arabia and OPEC”Reduce the price of oil“and is called Trade relations of the European Union with the United States very unfair.

Trump said he likes ‘a lot of love’
Trump said Thursday that he likes Chinese President Xi Jinping “very much“According to the White House’s reading of his virtual interview in Davos. He floated the idea of ​​working with XI to end the war in Ukraine. A separate survey by the American Chamber of Commerce in China, released Thursday, found that 30% of us with us companies in China are accelerating theirs plans to relocate production or explorationthe highest share since 2022.

Crypto executive order signed by Trump
On Thursday, cryptocurrency advocates got another push from Trump after he signed Executive order to promote the promotion of cryptocurrencies In the US, most of the order is focused on establishing technology and regulations around crypto. One of the most important pieces is the creation of a working group to review the national digital assets.

Boeing Projects huge losses
Boeing said Thursday that it is likely lost about $4 billion in the fourth quarteror a loss of $5.46 per share. Revenue is likely to come in at $15.2 billion, below LSEG’s estimate. Boeing has not posted annual earnings since 2018. The aircraft manufacturer started 2024 with Air crash and finished it A crippling labor strike and layoffs.

(Pro) Fink goes against pessimism in Europe
According to Larry Fink, CEO of BlackRock, there is serious “pessimism” about Europe’s future at Davos. However, Fink told CNBC on Thursday things may be “not far from rock bottom” — and explains Why does he take this view.

Markets must work by the numbers: past performance, profit projections, return on capital. But words are just as powerful when it comes to moving markets, as Trump’s virtual address to the World Economic Forum on Thursday demonstrated.

Price We have raw and a global benchmark Brent He fell for Trump, saying “ask Saudi Arabia and OPEC to lower the price of oil.”

And after Trump said he would “demand that interest rates come down immediately,” the two-year Treasury yield, which tends to track short-term interest rates, edged lower, while stocks ticked higher.

in fact, S&P 500 Added 0.53% to close at a record high close of 6,118.71. In early December, the last all-time close was 6,090.27. A Dow Jones Industrial Average increased by 0.92% and NASDAQ COMPOSITEE gained 0.22%. It was the fourth straight session in the green for all three indexes.

But unlike numbers – which are factual (in most cases, anyway) – words can be fickle.

“Trump’s Davos speech contained some ostensibly positive lines (he called on OPEC to lower oil prices, demanded lower interest rates from central banks, and reiterated earlier promises on taxes and regulation), but very little was incremental or within his control,” – Adam ” , – Adam”, – Adam “, – Adam Crisofili, founder of Vital Wernows, said in a note.

This does not mean that Trump will not postpone his declarations. However, it is not wise to bank on comments that are not filled with concrete actions.

On the other hand, there are some words that have politics behind them, and investors should take them seriously.

The US Federal Reserve meets next week. While the probability of a rate cut, then, according to zero, according to the data FedWatch CMeGROUP toolwhat Chairman Jerome Powell says at his press conference “is likely to destabilize the market,” according to James Demmert, chief investment officer of Main Street Research.

Learning what to listen for can be just as important to investors as deciphering the numbers.

— CNBC’s Alex Harring and Jesse Fund contributed to this report.