On Thursday, S&P 500 returned to a record height, after reaching a peak in early December, after a rally that began after the threshold of inflation concerns when President Donald J. Trump reaffirmed his commitment to reduce oil prices. An important component of inflation.
S&P 500 increased only 0.5 % on Thursday, but the winner increased a winning series more than a week ago, with data showing that economists more than expected Inflation has declined in December. With the height of Thursday, the index increased by 4 % in the first three weeks of the year.
The recent rally arrived when the market was over weeks, as investors are worried about the influence of inflation of policies promised by Mr Trump – in particular, new taxes and mass deportation programs that consumer prices and consumer prices and Can advance wages.
Wall Street was concerned that inflation would force the Federal Reserve to leave much more than expected before interest rates, as it tried to control consumer prices. High interest rates increase the cost of borrowing for consumers and companies and usually weighs prices in the equity market.
But the release of new inflation data in recent weeks has reduced these concerns, investors have got another promotion on Thursday, when Mr Trump’s oil cost at the World Economic Forum in Davos, Switzerland Promised to reduce it. “
Western Texas intermediate crude oil fell from 1 percent to $ 74.62 a barrel on Thursday.
In the bond market, the production of a two-year treasury-interest rate is sensitive to changes in the expectations, which depends on the path of inflation-the lower the help is less.
While the production of 10-year-old Treasury-an important market interest rate that reduces corporate and consumer loans-its height on Friday, has increased significantly over the past week.
“After this inflation data, production is decreasing,” said Lauren Gadoon, a New York Life Investment expert. “This is the basis of the Equity Market this week that we have this week.”
Some investors are also happy to see that the Trump administration has taken time on the danger of its rates and massive exile. Mr Trump has promised 25 % tariffs on imports from Canada and Mexico, and 10 % tariffs on imports from China – but not until February. Before taking power, the president said he was considering up to 60 % rates on imports from China.
“The worst concerns have not been realized and it has helped the market move beyond the height,” said David Kelly, chief of the JP Morgan Asset Administration.
Increasing stock prices have also been co -operation through positive corporate income reports. Netflix increased by about 10 percent on Wednesday after reporting the strongest consumer growth in its history in the last quarter of the last year. General Electric increased by about 6.5 percent on Thursday after defeating analysts’ profits.
According to Fact Set data, for companies in S&P 500, revenue has increased by more than 12 % in the fourth quarter compared to the same period in 2023. This will become the best quarter of the company’s profit from the end of 2021.
Some caution signs remain, however: the arrival of funds that the US stock buys has slowed down and a scale of stock ownership ownership from Deutsche Bank has come down to its lower levels in two months.
In 2023 and 2024, S&P 500 increased by more than 20 %, which led to the warning that the rally is far away, especially the development of large technology companies that now dominate the market, which many Investors are dependent on their performance.
JP Morgan Chase’s chief executive, Jamie Demon, while interviewing CNBC on Wednesday said that the prices of the assets had already risen. “You need good results to justify these prices,” he said.
Ms Gadoon said that when it comes to the new administration, it is analyzed by the desired action.
“What changes in our day is the danger or the fact that the market is reacting to something of truth,” he said. “It’s not a good thing or a bad thing, it’s a new thing.”
