DONALD TRUMP REACTS TO DOW TOPPING 50,000 FOR FIRST TIME EVER
President Donald Trump spoke out after the U.S. stock market roared back on Friday, as technology stocks recovered much of their losses from earlier in the week and bitcoin halted its plunge, at least for now.
The S&P 500 rising 2% for its biggest gain since May. The Dow Jones Industrial Average jumped 1,206 points, or 2.5%, topping 50,000 for the first time, while the Nasdaq composite gained 2.2%.
Trump posted on Truth Social, “The ‘Experts’ said that if I hit 50,000 on the Dow by the end of my Term, I would have done a great job, but I hit 50,000 today, three years ahead of schedule — Remember that for the Midterms, because the Democrats will CRASH the Economy!”
Trump has pointed to recent gains in the stock market as evidence that his economic agenda is working, but economists say a rising market does not necessarily signal broad improvement across the economy. Stock prices are influenced by expectations about corporate profits, interest rates and future growth, and they often reflect the fortunes of large companies and wealthy investors more than those of typical households.
While a stronger market can lift consumer confidence and retirement savings, it does little on its own to address challenges such as stubborn inflation, high borrowing costs and uneven wage growth. Many Americans remain sensitive to rising prices for housing, food and energy, and small businesses continue to face higher financing costs. Economists note that a sustained economic turnaround depends more on factors such as job growth, productivity gains and easing cost pressures than on short-term market rallies.
“The hiring recession isn’t going to end anytime soon,” Heather Long, chief economist at Navy Federal Credit Union, wrote in a commentary.
“Job openings in December just fell to their lowest level since September 2020. It’s yet another sign of how little hiring–or interest in hiring–is happening in this economy.”
Chip Stocks Power Market Rally
Shares of chipmakers helped fuel Friday’s broad market rally. Nvidia rose 7.8%, trimming a weekly loss that had topped 10% earlier in the session, while Broadcom gained 7.1%, wiping out its decline for the week. The two stocks were the biggest contributors to the S&P 500’s advance, buoyed by optimism that corporate spending on artificial intelligence remains strong.
Big Tech Spending, AI Concerns Raise Questions
Investors continue to debate whether massive investments in AI will generate sufficient returns. Amazon CEO Andy Jassy said the company expects to spend about $200 billion this year on investments tied to AI, chips, robotics and low Earth orbit satellites. Similar spending plans announced by Alphabet have heightened concerns about profitability, and Amazon shares fell 5.6% despite the broader market rally.
Bitcoin, Metals Stabilize After Volatility
Bitcoin steadied after a steep, weeks-long decline that had cut its value by more than half from its October record. The cryptocurrency climbed back above $70,000 after briefly dipping near $60,000 late Thursday.
Precious metals also calmed after recent volatility. Gold rose 1.8% to settle at $4,979.80 an ounce, while silver added 0.2%. Prices had surged earlier this year as investors sought safe havens amid political uncertainty, high government debt and concerns about lofty stock valuations.
Bitcoin’s rebound helped lift stocks tied to the crypto economy. Robinhood Markets jumped 14% for the largest gain in the S&P 500. Coinbase Global rose 13%, and Strategy, known for holding large amounts of bitcoin, surged 26.1%.
Smaller U.S. companies also outperformed. The Russell 2000 index climbed 3.6%, reflecting optimism tied to domestic economic strength.
Consumer Sentiment Lifts Travel Stocks
A preliminary University of Michigan survey showed U.S. consumer sentiment improved slightly, defying expectations for a decline. The gains were strongest among stock-owning households, while sentiment among those without stock holdings remained weak, according to survey director Joanne Hsu.
Airline stocks benefited from hopes that improved confidence will translate into more travel spending. United Airlines rose 9.3%, Delta Air Lines gained 8%, and American Airlines climbed 7.6%.
Global Markets Mixed; Bonds Steady
European markets mostly advanced despite a sharp drop in Stellantis shares after the automaker announced a major charge tied to scaling back electric vehicle production. Asian markets were mostly lower, though Japan’s Nikkei 225 rose 0.8%, helped by gains in Toyota Motor.
In the bond market, Treasury yields were little changed. The yield on the 10-year Treasury slipped to 4.20%.
Updates: 2/6/26, 7:23 p.m. ET: This article was updated with new information and remarks.
This article includes reporting by the Associated Press.
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2026-02-07T00:08:40Z
