Trump Davos address lifts S&P 500 to record, reduce oil prices

US President Donald Trump delivered a speech via video conference at the World Economic Forum's annual meeting in Davos on Thursday. Footage of his speech on a big screen | Photo: AFP

The S&P 500, a key benchmark of the US stock market, soared to an all-time high on Thursday, closing at 6,118.71 after recovering from an initial slump. This milestone comes on the heels of President Donald Trump’s address at the World Economic Forum (WEF) in Davos, Switzerland, where he vowed to cut corporate taxes and implement measures to boost domestic investment. 

Speaking via video conference, Trump pledged to lower taxes for companies investing in the United States while increasing taxes on those that do not. His remarks also called on Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to reduce global oil prices, a move that contributed to a noticeable drop in oil prices on the international market. 

 

Investors welcomed the president's promises with optimism. “Everyone will definitely understand Trump's tax message, and we want to hear more about tax benefits now,” said Jack Ablin of Chrisett Capital. Analysts predict that Trump’s proposed tax cuts, trade reforms, and regulatory rollbacks could significantly boost US corporate profits if implemented.  

However, some economists are cautioning that these measures may drive up inflation, prompting the Federal Reserve to hike interest rates again.  

The president’s approach to trade has also stirred debate. Trump has hinted at imposing a 25 percent tariff on Canadian and Mexican goods, with specific tariffs on Canadian imports potentially starting February 1. In the Oval Office earlier this week, he ordered an investigation into trade practices with countries he believes are engaging in unfair trade with the US.  

Trump has particularly criticized Canada, alleging that the country takes undue advantage of trade opportunities. During his campaign, he proposed a blanket 10 percent tariff on all imported goods and up to 60 percent on Chinese imports.  

While Trump argues that tariffs will strengthen the US economy, critics warn that such measures could ultimately burden consumers through higher prices.  

Despite the mixed reactions, Trump’s promises appear to have bolstered investor confidence, pushing the S&P 500 to new heights and reinforcing optimism about potential economic growth under his administration.