The S&P 500 reached a new historical maximum after the US president gave his speech in the Davos forum.
He Market received Donald Trump positivelyand United States stock indices are aimed at ending a week in green, despite a slight setback on Friday. This occurs after The S&P 500 will reach a new historical maximum of 6,119 On Thursday’s wheel, after the president’s speech in Davos.
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Among any of the factors to highlight that they promoted the positive reception by the investor public, Trump continued to lower the tone to the commercial war with China. In this regard, the new president again, said that I would prefer not to have to wear tariffs against the Asian country. The lack of definitions in this front is interpreted as positive for the market, since it gives the guideline that the new president seeks to leave negotiations before imposing definitive clauses. For now, although their statements generated quite an echo, it will remain in detail the details to be able to dimension the possible impact more clearly.


Expanding on the last point, from the Trump administration began to talk about 10% general tariff to Chinese products from February. This It represents a number considerably less than 60% that the president repeated during the electoral campaign. Recall that Trump had mentioned on Monday that he planned to impose 25% rates on imports from Mexico and Canada from February 1. However, what is concrete at the moment, is the call to review commercial practices for April 1. In this context, the Dollar Index (DXY) accelerated its setback from Trump’s assumption by around 1.8% to 107.4. The countercara of this movement is displayed in what is heading to be a very good week for emerging coins.
On the other hand, where it seems that Trump will step on the accelerator, it is in the Pressure that will try to exert on the future of the Fed rates policy. Thus, on Thursday the president raised the tension with Powell, president of the Federal Reserve, by making a specific comment about it. In textual words he declared: “I demand a decrease in the interest rate immediately”while mentioning that the world’s central banks should also follow this path. Particular Timing For this mention, in the prelude to what was a new rise in rates by the Central Bank of Japan. Thus, the monetary policy rate of the Asian country step from 0.25% to 0.50%, reaching the highest level in 17 years.
Making a little memory, the tension between whom the Fed and Trump has history. Jerome Powell, had already faced this pressure to adjust the interest rates in 2018 (also with both in their current positions) when the Federal Reserve was in the middle of rates rise (from considerably lower levels to the current ones). While now we are at another time in the cycle, the market -and the fed- It is debated about the speed at which the monetary policy rate will be cut (and if you do). It is worth clarifying that today it is in the range of 4.25% to 4.5%.
The truth is that Trump inherits an economy that enjoys good health. The US economy grew 3.1% quarterly annouted in the third quarter of 2024, while the last Nowcast From Atlanta’s Fed indicates that this trend would have remained during the fourth quarter. The labor market also aligns this harmony and shows characteristic signs of a healthy economy. The latest employment data for the month of December surprised by their strength, with the unemployment rate located at 4.2%. It is because of the aforementioned factors that, despite the fact that the slowdown in inflation shows progress, Powell will not give the arm to twist since he knows well the risks of hurrying a low rate. The Fed is aware that a more lax monetary policy can sacrifice the progress in disinflation towards the objective of 2%.
Source: Ambito

I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.