S&P 500 closes at new record, Dow jumps 400 points as Trump pushes for low interest rates, oil

The S&P 500 rose to record highs on Thursday after President Donald Trump called for lower interest rates and cheaper oil prices.

The broad market index added 0.53%, hitting a record intraday high for the second session in a row. The benchmark ended the day at 6,118.71, surpassing its previous close of 6,090.27 recorded in early December.

The Dow Jones Industrial Average rose 408.34 points, or 0.92%, to 44,565.07, while Nasdaq Composite rose 0.22% to 20,053.68. Thursday marked the fourth straight winning session for all three major indexes.

Stocks took a leg up after Trump said Thursday, in a virtual speech to the World Economic Forum, that he would “demand that interest rates fall immediately.” The president also said he would ask Saudi Arabia to lower the price of oil, which pulled crude oil into the red. Short-term Treasury yields fell after Trump’s comments.

The stock market has gotten a boost this week from excitement over potential tax cuts and deregulation under Trump, as well as signs of robust economic growth. While rates remain an overhang, investors have been pleased lack of formal action on these charges during Trump’s first days back in the White House.

“He really can’t control interest rates, but the market likes to hear that kind of thing,” said Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report. “So far the market seems to like what Trump’s policies will be, so we’ll just have to see if there’s any follow-through.”

The fourth quarter earnings season is also off to a strong start Netflix and large banks that offer positive reports. But American Airlines poured some cold water on that enthusiasm, with the stock tumbling more than 8% Thursday after the company’s issuance weak guidance.