The S&P 500 reached a new record high on Thursday. It inched above a peak from early December. The index has gained 4 percent in the first three weeks of 2025.
The rally came after weeks of worry on Wall Street. Investors were concerned about inflation from President Trump’s policies. They thought new tariffs and deportations could push up prices and wages.
This could make the Federal Reserve keep interest rates higher than expected. But new data in recent weeks showed inflation slowed more than predicted in December.
S&P 500 market rally continues
This eased those concerns. President Trump also promised to “bring down the cost of oil” at the World Economic Forum in Davos. This gave stocks another boost on Thursday.
Strong corporate earnings have helped lift the market too. The combination of good earnings and less inflation fear has given investors more confidence. This has contributed to the S&P 500 reaching new heights.
In the bond market, yields on short-term Treasury bonds fell slightly on Thursday. These yields are sensitive to changes in interest rate expectations.
