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Global markets reacted strongly to President Trump’s virtual Davos speech, with key developments shaping sentiment across the board. The Bank of Japan (BOJ) hiked rates by 25 basis points, strengthening the Japanese yen against the U.S. dollar as core inflation reached a 16-month high in December.
The S&P 500 saw another record close on Thursday, driven by optimism from Trump’s comments about cutting interest rates and reducing oil costs. Meanwhile, the BOJ’s decision to raise rates amid rising inflation signaled caution among investors.
In Davos, Trump emphasized the need for lower oil prices through Saudi Arabia and OPEC and called for closer trade ties with China. His speech also highlighted his support for weakening U.S. taxes and regulations, sparking mixed reactions in global markets.
On the cryptocurrency front, Trump’s executive order to promote digital assets provided a positive boost, though experts caution against overreacting without concrete actions. Boeing faced significant losses in its fourth quarter, with revenue dropping sharply amid labor strikes and supply chain disruptions.
European markets showed mixed signals as concerns about the region’s economic recovery persist. Larry Fink of BlackRock suggested Europe might be near a trough following pessimism at Davos, but his outlook didn’t discount ongoing challenges.
In summary, while words from leaders can significantly influence market movements, investors should consider both qualitative and quantitative indicators for informed decisions.
Source: https://www.cnbc.com/2025/01/24/cnbc-daily-open-trumps-comments-bump-sp-500-to-new-high.html