S&P 500 Achieves Record Close Amid Trump Remarks and Earnings Reports

Jan 23 (Reuters) – The benchmark S&P 500 surged to a record closing high on Thursday, as market participants evaluated a range of corporate earnings and absorbed statements from President Donald Trump. Trump’s remarks, which included a call for reductions in interest rates and oil prices, were a key focus for investors.

During his address at the World Economic Forum in Davos, Switzerland, Trump urged OPEC to lower oil prices and pressed central banks to cut interest rates. Additionally, he warned global business leaders of potential tariffs on products manufactured outside the United States. Investors have been cautiously tracking Trump’s tariff rhetoric but remain encouraged by his calls for lower rates and oil prices, according to Lindsey Bell, chief strategist at 248 Ventures.

“Overall, the market remains optimistic as they digest Trump’s policies. This optimism is reflected in today’s market performance,” Bell stated.

Despite this optimism, concerns persist among investors that tariffs could contribute to inflationary pressures and impede the Federal Reserve’s ability to continue rate cuts. The Fed is widely expected to hold interest rates steady during its upcoming policy meeting next week.

Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, remarked that the Fed is likely to base its decisions on economic data rather than presidential appeals.

“I don’t think the Fed will be swayed by Trump’s remarks on interest rates. Their focus remains on economic indicators,” Tuz explained. He viewed Thursday’s market movements as a combination of earnings reactions and responses to the Trump administration’s policies.

All three major Wall Street indices recorded their fourth consecutive day of gains. The S&P 500 (.SPX) gained 32.34 points, or 0.53%, to close at 6,118.71, marking its first record close since December 6. The Dow Jones Industrial Average (.DJI) climbed 408.34 points, or 0.92%, to 44,565.07, while the Nasdaq Composite (.IXIC) advanced 44.34 points, or 0.22%, to 20,053.68.

All 11 S&P 500 sectors registered gains, with the healthcare sector (.SPXHC) leading the way, rising approximately 1.35%, followed by industrials (.SPLRCI), which gained 0.96%. The S&P 500 banks index (.SPXBK) ended 0.73% higher after reaching a record high earlier in the session.

The utilities sector (.SPLRCU) trimmed earlier gains but still closed up 0.47%, driven by Trump’s assertion at Davos that the U.S. requires twice its current energy capacity to support emerging AI operations. Notably, Constellation Energy (CEG.O) climbed 4.1%, AES Corp (AES.N) rose 3.6%, and Vistra Corp (VST.N) gained 2.7%.

Technology (.SPLRCT) recorded the smallest gains, adding just 0.12%, following a 2.5% rally on Wednesday after Trump announced a $500-billion private-sector investment in AI infrastructure.

On the economic front, the U.S. Labor Department reported weekly jobless claims of 223,000, slightly above expectations of 220,000.

In earnings news, GE Aerospace (GE.N) shares soared 6.6% after projecting higher-than-expected 2025 profits, while health insurer Elevance (ELV.N) saw a 2.7% increase after surpassing fourth-quarter profit estimates. Conversely, Electronic Arts (EA.O) plunged 16.7% following a downward revision of its annual bookings forecast, and American Airlines (AAL.O) slid 8.7% after issuing lower-than-expected 2025 profit guidance.

Trading volumes on U.S. exchanges totaled 13.54 billion shares, below the 20-session average of 14.83 billion.

Advancing issues outnumbered decliners by a 1.45-to-1 ratio on the NYSE, with 255 new highs and 52 new lows recorded. On the Nasdaq, 2,584 stocks advanced while 1,807 declined, yielding a 1.43-to-1 ratio. The S&P 500 registered 32 new 52-week highs and six new lows, while the Nasdaq Composite reported 77 new highs and 116 new lows.

(Sources: Reuters, Bloomberg, CNBC)