US: Stocks gain as Trump touts plan for tax cuts
WALL Street stocks finished higher on Thursday, shrugging off early weakness as investors digested President Donald Trump’s remarks to the World Economic Forum in Davos.
Trump’s much-anticipated video appearance included a call for lower interest rates, a renewed threat of tariffs on companies that plan to import items and a pledge to cut corporate taxes further.
Investors cheered the message on tax cuts, which Trump held out as a “carrot” to attract investment as compared with the “stick” of tariffs, said Jack Ablin of Cresset Capital.
The Dow Jones Industrial Average finished up 0.9 per cent at 44,565.07.
The broad-based S&P 500 climbed 0.5 per cent to 6,118.71, while the tech-rich Nasdaq Composite Index advanced 0.2 per cent to 20,053.68.
“Certainly everyone understands the tariff message and now we’re hearing more about the tax incentives,” said Ablin.
Ablin noted that Trump has not advanced a campaign trail proposal to hike tariffs on Chinese goods by 60 per cent, evidence of some “moderation” in the returning president’s tone.
Among individual companies, American Airlines slumped 8.7 per cent as it issued a disappointing profit forecast for 2025. The carrier projected a loss in the first quarter, but predicted travel demand would strengthen later in the year, boosting earnings.
But GE Aerospace jumped 6.6 per cent as it reported better than expected profits and offered a positive 2025 outlook on robust demand for commercial aviation engines and services. AFP
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