Market Rollercoaster: Trump's Policies Ignite Economic Speculation

The S&P 500 hit record highs, driven by President Trump's economic policies discussed at the World Economic Forum. While he advocates for lower interest and global oil prices, looming tariffs create investor uncertainty. Market fluctuations reflect potential inflationary pressures amid anticipated Federal Reserve rate hikes.

The S&P 500 reached unprecedented heights on Thursday following U.S. President Donald Trump's push for reduced interest rates, propelling stock markets amidst trade deal uncertainties. Addressing business leaders at the World Economic Forum in Davos, Trump expressed intentions to curtail global oil prices, interest rates, and taxes, while hinting at tariffs on U.S. imports.

"Interest rates must drop immediately," Trump asserted via video conference, amid rising investor apprehension over potential tariff implications. Despite the lack of further details, bond markets reacted to possible inflation threats, with Treasury yields climbing for a second consecutive day.

The S&P 500 ended the day up by 0.5%, closing at a record high of 6,118.73 points. Simultaneously, European and Asian markets displayed mixed reactions, influenced by technology share sell-offs and proposed tariffs on imports from Mexico, Canada, and the European Union. The dollar index languished near a two-week low amid such volatility.

(With inputs from agencies.)