Breakfast | U.S. stock indices rise for three consecutive days, S&P 500 hits a new high, Trump says he will demand the Federal Reserve to cut interest rates immediately
Tech stocks and AI concept stocks showed mixed performance, with most chip stocks closing lower, while NVIDIA remained flat. Trump reiterated that hefty tariffs would be imposed if production is not done in the U.S., and he stated that he would demand the Federal Reserve to continue cutting interest rates immediately, suggesting that the world should lower interest rates as well. He will ask the Middle East to reduce oil prices. He criticized the European Union for targeting large American tech companies and mentioned that U.S.-China relations are very good. Trump stated that the U.S. needs double the current energy supply to achieve the expected scale of AI. Microsoft CEO responded to the Stargate concerns, stating that their $80 billion is not an issue
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Three major stock indexes closed higher, S&P 500 hits a new high, chip stocks pull back, Arm falls over 7%
Trump called on Saudi Arabia and other OPEC countries to lower oil prices at the Davos Forum on Thursday, criticizing the Federal Reserve, claiming he understands interest rates better than Fed Chairman Powell, and will demand the Fed to immediately continue cutting interest rates, stating that the whole world should lower rates. Subsequently, U.S. stocks continued to rise, with the S&P hitting a new high. The Dow Jones rose 0.92%, the S&P 500 index rose 0.53%, and the Nasdaq rose 0.22%.
Chip stocks performed relatively weakly, with South Korean memory chip manufacturer SK Hynix warning of a larger decline in demand for commercial memory chips, putting pressure on the chip sector. Ultimately, Arm fell over 7.4%, Micron fell over 4%, and NVIDIA closed roughly flat.
Microsoft rose 0.11%, Amazon rose 0.17%, Meta rose 2.08%, Apple fell 0.08%, Google A fell 0.2%, and Tesla closed down 0.66%.
AI concept stocks had mixed performances. Palantir rose 2.74%, Oracle rose 1.22%, C3.ai rose 1.22%, and Salesforce rose 0.61%. SoundHound AI, in which NVIDIA holds shares, rose 0.12%, and Applovin rose 0.22%. Serve Robotics fell 0.5%, and BigBear.ai fell 4.95%.
Chinese concept stocks had mixed results. FTSE China 3x Long ETF (YINN) rose 0.4%, China Technology Index ETF (CQQQ) fell 0.96%, and Chinese Internet Index ETF (KWEB) rose 0.14%. FTSE A50 futures closed up 0.39% in the overnight session, reporting 12899.000 points. Among popular Chinese concept stocks, Fangdd rose 2.5%, New Oriental rebounded 1.4%, Pinduoduo rose 0.9%, Li Auto rose 0.6%, JD.com fell 1.07%, Zhihu fell 0.88%, Baidu fell 0.52%, Alibaba fell 0.35%, NetEase fell 0.07%, XPeng fell 2%, Nio fell 3.5%, ZEEKR fell 3.58%, Xiaomi Group ADR fell 2.41%, and Miniso fell 4.23%.
Trump: Will demand the Fed to immediately cut interest rates and call on the world to follow suit
Trump stated at the Davos Forum: "As oil prices fall, I will demand an immediate rate cut, and similarly, the whole world should cut rates." Five days later, the Federal Reserve will hold its first policy meeting since Trump took office on January 28-29, with widespread expectations that the Fed will keep interest rates unchanged at this meeting.
Trump: I understand interest rates better than Powell, will talk to him "at the appropriate time"
Trump questioned Fed Chairman Powell's interest rate decisions, saying, "If I disagree with the (interest rate policy), I will let everyone know." When asked if he believes Fed officials will listen to him, Trump replied, "Yes." Trump had previously stated during his campaign that he should be able to tell Powell how he thinks interest rates should change
U.S. President Trump: Congress will pass the largest tax cut in American history
Trump: Huge tariffs will be imposed if not produced in the U.S.
Trump stated at the Davos Forum that his message to global companies is "to produce products in the U.S.," otherwise they will have to pay varying amounts of tariffs. He also promised to reduce the corporate tax for companies producing in the U.S. to 15%. Trump criticized the EU for having excessively high tariffs, overly restrictive regulations, and a significant trade deficit with the U.S.
Trump criticizes the EU for targeting American tech companies like Apple and Google
Trump criticized EU regulators for targeting Apple, Google, and Meta, stating that the EU's accusations against American companies are "a form of taxation." Trump specifically mentioned that Apple lost a lawsuit last year in the EU court regarding a €13 billion tax bill from Ireland.
Trump: U.S.-China relations are very good
According to China Central Television, on the 23rd, Trump stated that he has communicated with Chinese national leaders and believes that U.S.-China relations are very good.
Trump: Will demand Saudi Arabia and OPEC lower oil prices and request the former to invest $1 trillion in the U.S.
Trump stated that he will demand Saudi Arabia and OPEC to lower oil prices and will ask Riyadh to increase the proposed $600 billion investment plan in the U.S. to $1 trillion. "If oil prices drop, the Russia-Ukraine conflict will end immediately," Trump said, "Now, oil prices are high enough to keep the conflict going—prices must come down."
Trump's cryptocurrency executive order: Assessing the creation of a national reserve and banning CBDCs
According to Fox Business News, Trump signed an executive order to establish a Presidential Digital Asset Market Working Group, tasked with developing a federal regulatory framework for managing digital assets (including stablecoins) and assessing the creation of a strategic national digital asset reserve. The working group will be chaired by David Sacks, the White House "AI and cryptocurrency czar," with members including the Secretary of the Treasury, the SEC Chair, and heads of other relevant departments and agencies.
Trump responds to Musk's criticism of the "Gateway" project
He is not concerned about his criticism and has spoken with Musk and everyone involved in the project.
Microsoft CEO responds to Elon Musk's doubts about the financing potential of the "Gateway" project
He is not particularly familiar with the details of their investment, but our $80 billion is not a problem.
The U.S. hopes to hold 50% of TikTok shares, and China's Ministry of Commerce responds
Opposes actions that violate the basic principles of a market economy and harm the legitimate interests of enterprises.