US stocks end with gains following Trump's Davos speech

ISTANBUL

US stocks ended higher Thursday following President Donald Trump's messages at Davos.

Trump, speaking via video conference during the 55th Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland, called on business leaders to shift their manufacturing to the US.

He also warned that if they failed to do so,

they would have to pay tariffs. Trump also said he would work with Congress to lower the corporate tax rate to 15% for companies that manufacture in the U.S.

Saying he will ask Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to lower oil prices, Trump noted that he will also demand an immediate reduction in interest rates and said that interest rates should decrease all over the world.

On the other hand, while uncertainty continues over tariffs that Trump plans to impose on US trade partners such as Mexico, Canada, China and the European Union, investors are concerned that tariffs will increase inflationary pressures and slow the pace of monetary policy easing by the Federal Reserve.

On the macroeconomic data side, the number of first-time jobless claims in the US rose to 223,000 in the week ending Jan. 18, exceeding market expectations.

The Dow Jones Industrial Average rose by 0.92%, or 408.34 points, to end the day at 44,565.07.

The S&P 500 increased by 0.53%, or 32.34 points, to 6,118.71, while the Nasdaq Composite rose by 0.22%, or 44.34 points, to 20,053.68.