US stocks gain ground after Trump Davos remarks

AFP , Thursday 23 Jan 2025

Wall Street stocks were mostly higher near midday Thursday, with markets climbing after US President Donald Trump's Davos appearance following a mixed round of corporate earnings.

Trump
US President Donald Trump is seen on a large screen during his address by video conference at the World Economic Forum (WEF) annual meeting in Davos. AFP

 

Trump's much-anticipated remarks included a call for lower interest rates, a renewed threat of tariffs on companies that plan to import items and a pledge to cut corporate taxes further.

The rise in stocks during the appearance most likely was due to comments on cutting corporate taxes, which "can benefit foreign companies choosing to produce their products here (in the United States)," said Briefing.com analyst Patrick O'Hare.

Near 1700 GMT, the Dow Jones Industrial Average was up 0.6 percent at 44,413.06.

The broad-based S&P 500 edged up 0.1 percent to 6,092.08, while the tech-rich Nasdaq Composite Index fell 0.3 percent to 19,945.40.

Trump's remarks followed a mixed day of results for US companies.

Solid earnings reports from GE Aerospace and the Union Pacific railroad company were countered by disappointing announcements from American Airlines and Electronic Arts.

During his appearance, Trump sent a blunt message on trade.

"Come make your product in America and we will give you among the lowest taxes of any nation on earth," Trump said.

Earlier at Davos, World Trade Organization chief Ngozi Okonjo-Iweala urged nations to keep calm over tariffs, warning that a tit-for-tat trade war would be "catastrophic" for the world economy.

O'Hare also said Trump's remarks on pressuring Saudi Arabia to lower oil prices and end the Ukraine war were also supporting factors for stocks.

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