Market Swirls: S&P 500 Hits Record Amid Tariff Concerns

The S&P 500 reached an all-time high as investors navigated through corporate earnings and President Trump's comments on interest rates and oil prices. Tariff uncertainties have increased market apprehension, although optimism remains high around potential policy changes. Energy sectors surged, while tech stocks retreated slightly.

The benchmark S&P 500 climbed to a new peak on Thursday, as investors evaluated a mix of corporate earnings and remarks from President Donald Trump, who called for cuts in interest rates and oil prices. During the World Economic Forum in Davos, Trump urged OPEC to lower oil prices and central banks to reduce rates, warning international businesses of potential tariffs on products made outside the U.S.

Tariff uncertainties loom over the market as the president announced potential tariffs on imports from Canada, Mexico, China, and the European Union could start February 1. However, analysts anticipate significant announcements by April 1. Investors are wary that tariffs could heighten inflation pressures and hinder the Federal Reserve's ability to ease monetary policy. Traders predict the Fed will maintain current interest rates till mid-2025, as per data from LSEG.

Despite investor caution on tariffs, there's optimism over potential reductions in interest rates and oil prices, according to Lindsey Bell, chief strategist at 248 Ventures. Meanwhile, tech stocks pulled back, following a previous rally after Trump's proposed $500-billion private investment in AI infrastructure. Energy-related stocks surged when Trump emphasized the U.S.'s need to double energy capacity to support advancing AI operations.

(With inputs from agencies.)