Treasury chief says Trump's plan is 'working' and his 'economy is delivering for Americans'
In a historic moment, the Dow Jones Industrial Average has surpassed 50,000 points for the first time, marking an all-time high. This follows a volatile week in the markets, characterized by a significant rebound and driven by several positive economic indicators. Consumer sentiment unexpectedly improved, contributing to market optimism, while inflation data also surpassed expectations. Analysts noted that a robust combination of factors, including investments in artificial intelligence and a resurgence in manufacturing, is driving market confidence and pushing stock prices higher.
US Treasury Secretary Scott Bessent addressed the situation on Fox News' Sunday Morning Features, saying, "We're seeing the industrial sectors under the market hit new highs. And in my 35- 40 years on Wall Street, that tells me—Wall Street is telling you that Main Street is about to prosper. We are seeing a big cyclical recovery. The president's agenda set the table in 2025, and now the American people are going to benefit in 2026. And that's what the stock market is telling us. The stock market lives in the future, and I think we're going to have very strong economic growth, very strong job gains, and very strong real income growth." He also predicted that Americans will gain "substantial refunds" from Trump's policies this year. "The president's plan is working. The Trump economy is delivering for the American people."
Bessent had earlier highlighted the successes of the Trump economy during the recent Senate hearing, noting strong growth and decreasing inflation, which is currently at 2.1%, close to the Federal Reserve's target. The S&P 500 and Nasdaq both saw 2% and 2.2% increases, respectively, while the Dow ended the day at 50,015.67, up 2.3%. President Trump has credited his tariffs, which are at their highest levels since 1935, with helping the stock market reach historic highs. On social media, he conveyed his appreciation for the tariffs, saying they improved financial and national security. Meanwhile, The Guardian reported that even if the president's trade ideas are tough and could result in increased tariffs on different trading partners, many investors reject them.
"The Dow Jones Industrial Average just hit 50,000 for the first time in History. CONGRATULATIONS AMERICA!" Trump posted on his Truth Social page as he celebrated the recent stock victory. He noted in another post, "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!" Fox News Digital reported.
Chip stocks saw a sharp boost due to Amazon and Alphabet's increased investment in AI data centers. Shares of Nvidia, AMD, and Broadcom increased by more than 7%, but Amazon's stock fell by about 7% when the company revealed a significant rise in capital expenditures. The S&P 500 and Nasdaq saw losses for three days, but overall market mood improved thanks to the University of Michigan's optimistic inflation expectations report. That said, worries about competition impacting margins and exorbitant valuations led to stock drops in several software companies. Nine out of the eleven S&P 500 sector indexes had gains, with information technology seeing the largest increase at almost 3.7%.
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