Stocks finished higher, with the S&P 500 closing at a fresh record, amid optimism over the new administration of President Donald Trump.
The S&P 500, which also posted an intraday high for the second day in a row, gained 0.53% to close at 6,118.71, outpacing its prior all-time closing high of 6,090.27 recorded in early December.
The Dow Jones Industrial Average surged 408.34 points, or 0.92%, to 44,565.07, while the tech-heavy Nasdaq gained 0.22% to end the day at 20,053.68.
"President Trump’s pro-growth agenda, a reprieve from rising rates, and solid earnings thus far have recently renewed investor optimism," said Adam Turnquist, chief technical strategist for LPL Financial.
"Momentum has turned bullish as the broader market approaches record-high territory. However, market breadth measures have not kept up with the recent rebound in stocks, implying the latest advance has been relatively narrow," he added.
While deviations between price and market breadth can persist for extended periods, Turnquist said, they can often foreshadow building vulnerabilities of a rally susceptible to stalling.
"While we are not making a call for an imminent correction, investors should not be surprised if one develops this year as history shows they occur at least once per year," he said.
Updated at 11:26 AM EST
Trump speaks
Stock turned higher in late-morning trading as President Trump addressed the World Economic Forum in Davos and outlined the broad strokes of his economic, immigration and social policies.
Global oil prices, meanwhile, turned lower after the President said he would pressure the OPEC cartel to bring down costs. He also vowed "rapid action" to cut government spending and reduce government borrowing costs.
The S&P 500 was marked 6 points, or 0.1% higher on the session while the Dow gained 204 points. The Nasdaq, meanwhile, remained 55 points, or 0.27% lower.
LIVE: President Donald J. Trump Addresses the World Economic Forum in Davos - 1/23/25
— RSBN 🇺🇸 (@RSBNetwork) January 23, 2025
https://t.co/JYunPyoUlf
Updated at 9:36 AM EST
Mixed open
The S&P 500 was marked 6 points, or 0.11% lower in the opening minutes of trading, with the Nasdaq down 110 points, or 0.55%.
The Dow was marked 51 points higher while the mid-cap Russell 2000 slipped 11 points, or 0.45%.
Benchmark 10-year note yields crept to 4.656% while 2-year notes were holding at 4.304%.
S&P 500 Opening Bell Heatmap (Jan 23, 2025)$SPY -0.12% 🟥$QQQ -0.54% 🟥$DJI +0.07% 🟩$IWM -0.49% 🟥 pic.twitter.com/s7swrKhFVm
— Wall St Engine (@wallstengine) January 23, 2025
Updated at 8:36 AM EST
Longer unemployment line
Around 223,000 Americans filed for first time jobless benefits last week, the Labor Department reported, a modestly higher-than-expected tally that rose by 6,000 from the prior period.
The increase lifted the closely-tracked four-week average to 213,500 over the period ending on Jan. 18, with continued claims rising to 1.899 million.
Stocks were little-changed following the data release, with the S&P 500 called 5 points lower and the Nasdaq priced for an 85 point pullback.
Benchmark 10-year Treasury note yields were holding at 4.641% while 2-year notes edged 1 basis point higher to 4.302%.
🇺🇸 United States Continuing Jobless Claims $USD
— PiQ (@PiQSuite) January 23, 2025
Actual: 1,899K
Expected: 1,860K
Previous: 1,853K
Updated at 7:43 AM EST
GE Aerospace flies
GE Aerospace shares powered higher after the legacy business of General Electric, which was broken up last year, topped the Street's fourth quarter earnings forecasts and issued an upbeat outlook for the coming year.
GE Aerospace said its sees adjusted 2025 profits in the region of $5.10 to $5.45 per share, compared to the LSEG forecast of $5.23 per share, and plans to boost its overall dividend by around 30%.
GE Aerospace shares were marked 7.44% higher in premarket trading to indicate an opening bell price of $202.37 each.
$GE Q outstanding across the board w EPS, rev beats and margins 500 bps better y/y. FCF at $1.5B vs $1.2B expectations. 2025 guide higher w 30% jump in dividend and $7B buyback. Larry Culp + team lives up to the high expectations.
— Stephanie Link (@Stephanie_Link) January 23, 2025
Updated at 7:15 AM EST
American grounded
American Airlines shares slumped lower in early trading after the carrier posted a muted near-term outlook that offset a better-than-expected fourth quarter earnings report.
American topped Street forecasts with earnings of 86 cents per share, with revenues rising 4.6% to $13.66 billion.
However, the group is now forecasting lower-than-expected full-year profits of between $1.70 to $2.70 per share, with overall revenues rising by around 4.5% to 7.5%, thanks in part to higher fuel prices and rising labor costs tied to a contract extension reached with labor unions representing mechanics, baggage handlers and ground workers in September.
American Airlines shares were last marked 7% lower in premarket trading to indicate an opening bell price of $17.35 each.
$AAL Q4'24:
— FwdQuarter (@FwdQuarter) January 23, 2025
Revenue: $13.7b, 2.0% YoY
FCF: $2.2b
Net income: $590m
EPS: $0.84/share
FY'24
Revenue: $54.2b
Net income: $846m
EPS: $1.24/share
Record Q4 revenue of $13.7B
Record full-year revenue of $54.2B
Record full-year free cash flow of $2.2B
PR: https://t.co/grDjPDOTkS pic.twitter.com/70fWWExX08
Stock Market Today
Stocks closed higher across the board on Wednesday, with the S&P 500 printing a fresh intraday high before closing just four points shy of its early December peak. The market move came amid solid gains in tech stocks tied to a new AI venture backed by the president.
Focus is likely to shift Thursday to Trump's address to the World Economic Forum in Davos, Switzerland, later today and the chances he'll detail a new round of tariffs on goods from the European Union.
Trump has already said he'll impose significant levies on imports from Canada and Mexico, with a 10% tariff on China, starting Feb. 1.
Bond markets treaded cautiously in the overnight session ahead of Trump's virtual address, as well as a reading of weekly jobless claims from the Labor Department at 8:30 a.m. U.S. Eastern Time.
Benchmark 10-year Treasury note yields were last marked modestly higher at 4.631% while 2-year notes steadied at 4.301%.
The U.S. dollar index, which tracks the greenback against a basket of six global currency peers, was marked 0.02% higher at 108.203 heading into the start of the New York trading session.
On Wall Street, stocks look set for a modestly weaker open following last night's run at a new record high. Futures contracts tied to the S&P 500 are priced for a 10-point pullback and those linked to the Dow Jones Industrial Average are called 10 points higher.
Related: Elon Musk throws shade at $500 billion Stargate venture
The tech-focused Nasdaq, meanwhile, is looking at a 105-point decline with Nvidia (NVDA) , Tesla (TSLA) and Palantir Technologies (PLTR) active in premarket trading.
GE Aerospace (GE) and American Airlines (AAL) will report fourth-quarter earnings prior to the opening bell, with Texas Instruments (TXN) set to update after the close of trading.
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In overseas markets, Europe's Stoxx 600 was marked 0.06% higher in mid-day Frankfurt trading, with the FTSE 100 down 0.05% in London.
Overnight in Asia, Japan's Nikkei 225 closed 0.79% higher, and topped the 40,000 point mark earlier in the session, as the Bank of Japan began its two-day policy meeting. That could lead to the highest benchmark lending rate in 17 years.
The regional MSCI ex-Japan benchmark, meanwhile, was last marked 0.22% lower heading into the close of trading.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
