Stocks soared to multi-week highs with the Dow surging 570 points; Bitcoin surpassed $100,000 amid trade optimism. President Trump urged stock purchases in the Oval Office, signalling an easing in trade tensions. Major tech companies led the rally, despite ongoing tensions with Federal Reserve over interest rates.
In a significant turn of events, stock and cryptocurrency markets bounced back impressively on Thursday. President Donald Trump used his platform, urging investors to buy stocks directly from the Oval Office. This remark appears to have accelerated a rally sparked by his perceived easing of the trade war stance and the announcement of a new trade deal with the U.K., marking the first agreement of his second term.
All three major U.S. stock indices reached multi-week highs, showcasing robust growth. The Dow Jones Industrial Average soared, gaining 570 points or 1.4%, the highest since early April. Meanwhile, the S&P 500 reached its best price since March 27 and the tech-heavy Nasdaq followed suit, achieving its highest level since March 26. This revival was primarily fuelled by a resurgence in investor confidence.
Bitcoin, the leading cryptocurrency, crossed the $100,000 threshold for the first time since February. This surge in digital assets came as optimism regarding the de-escalation of the trade war spread across the markets. The three dominant cryptocurrencies—Bitcoin, Ether, and XRP—all posted gains of at least 3.9% over a 24-hour period ending Thursday midday.
The rally wasn’t just confined to cryptocurrencies. Most sectors within the S&P 500 saw positive movement, with major tech firms, dubbed the “magnificent seven,” driving a significant portion of the momentum. This group—comprising Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—saw stock prices increase, led by Tesla’s impressive 4% rise. Bloomberg’s index dedicated to these stocks noted a 2% uplift in value.
Looking at the backdrop, it is important to remember that the S&P 500 previously endured a lengthy winning streak, spanning over 21 years, erased a substantial 12% loss between April 2 and April 8 due to Trump’s tariffs. Nonetheless, the index still sits about 7% lower than its peak from February. Interestingly, the recent rally took place even as Trump continues to bicker with Federal Reserve Chairman Jerome Powell over monetary policy. Despite Trump’s desire for lower interest rates, the Fed opted to hold them steady, choosing to wait for clearer indications on the impacts of tariffs—a decision that disappointed Trump, who openly expressed his frustrations with Powell.
