U.S. President Donald Trump told global leaders the U.S Stock Market will double during a World Economic Forum speech in Davos on Wednesday. Speaking in Switzerland, he dismissed Tuesday’s drop as “peanuts,” tied his outlook to upcoming economic actions, and spoke after sharp losses a day earlier. Notably, U.S. equities rebounded during his address as investors tracked his remarks in real time.
Trump Calls Market Dip “Peanuts,” U.S. Stock Market Gains
Trump addressed the U.S Stock Market directly during his Davos remarks and focused on the prior session’s selloff. He described the decline as minor compared with earlier gains. However, he said outside comments linked to Greenland had already cost the United States money. He then said the stock market “is going to be doubled.”
He expanded that view by naming index targets. Trump said the Dow Jones Industrial Average could reach 50,000. He added it could then double again to 100,000 within a relatively short period. Notably, he delivered those comments while markets attempted to stabilize after heavy pressure.
Markets Rebound During Speech After Prior-Day Selloff
As Trump spoke, the U.S Stock Market moved higher. The Dow Jones Industrial Average rose 519 points, or 1.1 percent. Meanwhile, the S&P 500 gained 1.1 percent, while the Nasdaq Composite advanced 1.2 percent. Earlier, all three indexes had slid nearly 2 percent during a broad selloff.
That earlier decline followed Trump’s warning that new tariffs could target European allies. Investors reacted quickly to those remarks. However, equities reversed early losses during the Davos address. According to market data, buyers returned as his comments reduced immediate uncertainty.
As per Jeffrey Kleintop, former global investment strategist at Charles Schwab,
Meanwhile, following the president’s speech, the stock market fell again. The Nasdaq 100 fell 1.5 percent in 45 minutes. Meanwhile, the S&P 500 dropped about 50 points, erasing most gains. Notably, Apple rose to $247.42, while Tesla climbed to $419.79. NVIDIA and Alphabet also gained, while Netflix declined.
Crypto Stocks See Red
Crypto stocks continued to weaken. Coinbase traded at $223.91, down 1.68 percent on the day. Strategy shares also slipped modestly during the session. Notably, Circle shares fell by 2.25 percent, extending a sharp multi-month decline.
Source: TradingView
Circle has now lost more than 63 percent over the past six months. The stock has shed most of the gains it recorded after its successful U.S. IPO last year.
U.S. markets ended the session volatile after Trump’s forecasts and policy remarks. His “peanuts” comment framed the prior drop as temporary. Meanwhile, his doubling projection and Greenland statements coincided with a rebound, then renewed pressure, across major indexes.
Source: https://coingape.com/news/stocks/u-s-stock-market-going-to-be-doubled-soon-trump/
