Trump Tariff Plans Market Centers, Push Stocks to Record Rallies – Oracle (NYSE: ORCL), SoftBank Group (OTC: SFTBY)

president Donald TrumpHints at upcoming tariff hikes have sparked a market rally, pushing stocks to record highs.

What happened: Earlier, the market was afraid of the possible inflationary effects of Trump’s tariff plan. However, the president’s initial actions have upended that narrative, raising market confidence in economic growth over the next four years.

Stocks have been on a steady upward climb since Trump took office. The S&P 500 hit a record high on Thursday, recovering from an early year selloff as traders digested a host of White House orders and policy announcements. However, on Friday it dropped to just 0.3%.

Despite Friday’s decline, optimism around Trump’s pro-business policies has largely pushed risk assets lower this week, as investors focus on his inauguration.

Traders were also reassured that there will be no formal tariff measures, as Trump has so far only issued threats on that front during his first days in office.

All three major indexes posted their second straight weekly gains, indicating a strong bull market rebound after December’s decline. The S&P 500 and NASDAQ each advanced roughly 1.7% for the week, while the DOW rose 2.2%.

While addressing world leaders in Davos on Thursday, Trump said he would demand lower interest rates immediately. He also said he would ask Saudi Arabia and other OPEC countries to lower the price of oil.

Read also: EXCLUSIVE: Eric Trump predicts inflation through energy policies and spending cuts

Nancy Tinglerchief investment officer at Laffer Tingler Investments He said Business Insider, “Now investors are focusing on, well, the executive orders are in, he’s serious about deregulation, he’s serious about getting the tax cuts.”

“These are important elements of the market, because — whether you agree with it or not is never the issue. The issue is uncertainty. The issue is uncertainty,” The Outlet said.

AAII’s latest Investor Sentiment Survey showed a significant increase in investor sentiment. It revealed that 43% of investors were bullish on the stock over the next six months, a significant increase from 25% from the previous week.

Trump’s executive actions this week redirected the market’s attention toward higher growth and away from the potential risks of an unpredictable trade policy. The president also revealed a deal worth $500 billion between… Openaiand oracle orcland Softbank Sftby To expand AI infrastructure, leading to an increase in AI technology shares.

Why does it matter?: The positive market response to Trump’s tariff orders and policy announcements indicates a shift in investor sentiment. The focus has shifted from potential inflationary risks to economic growth prospects.

This change is reflected in the record highs reached by stocks and the bullish outlook of investors.

The president’s announcement of a $500 billion deal to build more AI infrastructure also signals a strategic move toward technological advancement, which could stimulate economic growth and boost investor confidence in the technology sector.

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