Less than a month into the new year, the S&P 500 just hit a new record high of 6,118.71. Gold is closing in on one today, too, recently trading at $2,790 an ounce. The dollar is easing back, while Treasuries are flat and oil is up modestly.
We just had the strongest back-to-back annual gains for the S&P since 1997-1998...and so far in 2025, things are looking good, too. Strong corporate earnings, newfound stability in interest rates, and expectations of lighter regulation in Trump 2.0 are all fueling the market rally.
The US dollar has also given back some of its gains amid hopes Trump’s tariff actions will prove less aggressive than his tariff talk. Emerging market stocks are having their best week since July 2023, in part due to the dollar’s move.
Even an interest rate hike in Japan, which raised that country’s policy rate to a 17-year high of 0.5%, didn’t roil global markets much. Some were worried it would send the Japanese yen surging, leading to a market volatility spike.
S&P 500, Emerging Markets, Gold Rally as Treasuries, Dollar Stabilize
(SPY, EEM, TLT, UUP, GLD YTD % Change)
Data by YCharts
American Express Co. (AXP) and Boeing Co. (BA) were the latest widely held companies to share earnings news. AXP reported a 12% rise in Q4 profits, though earnings per share of $3.04 missed estimates by a smidge. The credit card giant projected an 8% to 10% rise in revenue for this year.
For its part, Boeing said it lost $5.46 per share due to the recent machinist strike and defense business charges. But the troubled airline manufacturer restarted production late last year, and successfully raised capital to give it cash to see it through to better days. AXP and BA shares were fairly stable in early trading.