The S&P 500 rose 1% last month to pull within 0.1% of its highest set ever. Dow Jones’ industrial average scored 342 points (0.8%), while Nasdaq composites increased by 1.5%.
MGM Resorts International jumped to one of the market’s biggest profits, 17.5%, after reporting profits in the recent quarter were stronger than analysts expected. Citing China’s growth, he said the trend is looking for digital businesses in Las Vegas and North America.
Other companies reporting better profit than expected include GE Healthcare Technologies, which rose 8.8%, Molson Coors Beverage, which won 9.5%, and Robinhood Markets, which jumped 14.1%.
Such reports, along with a very solid US economy, hold US stocks close to the record. A report on Thursday said fewer U.S. workers applied for unemployment benefits last week.
That’s despite many downward troops weighing stock prices.
The main one is stubbornly worrying about high inflation. According to a report on Thursday, following a similar report from the previous day on inflation felt by US consumers, it said inflation at the wholesale level was hotter than the economists expected last month.
Tariffs could further boost inflation. Trump on Thursday unveiled his plan to increase US tariffs on imports from other countries that are customized, based in part on national taxes on US goods.
Economists have warned of the pain that such tariffs could create, but financial markets are increasingly under threat. There is a strong belief that Trump is using harsh stories to drive negotiations, but he may not pass it completely to avoid damaging the US stock market and the economy.
It could take weeks or months to complete the necessary reviews for the tariffs announced Thursday, according to senior White House officials who advocated anonymity to preview details of the call with reporters. It means ample time for negotiations that could mitigate the ultimate impact.
Of course, Wall Street’s belief that the stock market acts as a guardrail hemming in Trump may turn out to be dangerous. Trump can make even bigger moves as the stock market continues to glide through their respective escalating threats.
But for now, at least for now, Trump may be “boxed” after a bit of the high-inflation numbers that hit this week, according to Macquarie strategist Thierry Withman.
Trump has already shown that he can quickly pull back the threat, like he did when he placed a 30-day suspension on the 25% tariff that he announced on all imports from Canada and Mexico.
Still, Trump continued on 10% tariffs on Chinese goods. GE Healthcare said Thursday that it took into account these tariffs when it sparked forecasts for profits and other financial measures in 2025.
On Wall Street, Deere & Co. fell 2.2% after reporting a decline in revenue and profits for the recent quarter. The agricultural machinery manufacturer said it is focusing on reducing inventory amid the “uncertain market conditions” facing customers.
Online message board Reddit also dropped 5.3% even extending Wall Street’s fourth quarter sales and profit targets to the outdoors, while affordable.
Cisco Systems rose 2.1% after reporting profits in the recent quarter than analysts expected. We cited the strength of a wide range of products, including artificial intelligence infrastructure.
The S&P 500 rose 63.10 points to 6,115.07. Its all-time high was 6,118.71, set on January 23rd. The Dow Jones industrial average rose from 342.87 to 44,711.43, while the Nasdaq composite jumped from 295.69 to 19,945.64.
In the bond market, the Ministry of Finance has been eased. Higher than expected inflation data sends higher yields than usual, but economists saw the encouragement nugget beneath the surface in a report on Thursday. For example, simpler healthcare services costs could help lower the various inflation measures. This is what the Federal Reserve considers as a better measurement stick than consumer prices and producer price indexes.
The Treasury yield in 2010 fell from 4.63% to 4.53%.
In addition to tighter budgets for US households, stubbornly high inflation could put the Federal Reserve on hold for a while when it comes to providing relief to Americans through lower interest rates.
The Fed was trying to sharply cut key interest rates from September until the end of last year, make borrowing cheaper, support the economy, and raise the prices of stocks, bonds and other investments. However, the Fed warned at the end of 2024 that it may not be cut that much in 2025 due to concerns about inflation remaining stubbornly high. The goal is to keep inflation at 2%, with lower rates allowing more fuel to inflation.
