Trump-Era Market Rally: Dow Surges 500+ Points on AI Investment Hopes and Tariff Shifts
Staff Editor Markets Rally as Trump’s Policies Spark Investor Optimism
U.S. stock markets surged in the initial days of Donald Trump’s presidency, with the Dow Jones Industrial Average soaring over 500 points. Investors responded positively to Trump’s softer-than-expected stance on tariffs and anticipation of a major AI infrastructure investment announcement.
The Dow closed at 44,025.81, up 1.24% or 537.98 points. Other major indexes followed suit, with the S&P 500 rising 0.88% to 6,049.24 and the Nasdaq Composite gaining 0.64% to 19,756.78. Small-cap stocks saw notable gains, with the Russell 2000 climbing nearly 2%.
Trump’s tariff policy, which was less aggressive than initially feared, contributed to the market rally. While the administration is considering 25% tariffs on Canadian and Mexican goods by February 1st, there was no immediate implementation. Trump has directed departments to study trade and currency practices, with potential policy adjustments expected after April.
Tech stocks received a boost from rumors of an impending announcement regarding a joint AI investment project involving OpenAI, Oracle, and Softbank. This news positively impacted technology mega-cap stocks such as Nvidia, Amazon, and Alphabet.
The market’s optimism was further fueled by expectations of a pro-business agenda under Trump. On his first day in office, the president declared a national energy emergency to boost U.S. fossil fuel production and implemented a regulatory freeze.
In the commodities market, West Texas Intermediate crude oil fell 2.30% to $76.09 a barrel, while Brent crude decreased 0.84% to $79.47 a barrel. Gold saw a slight increase to $2,754 an ounce. The cryptocurrency market also reacted positively, with Bitcoin rising 2.51% to $106,570.
As the new administration settles in, market participants remain watchful for further policy developments and their potential impact on various sectors of the economy.
