S&P 500 futures were little changed on Friday, a day after the index hit a record closing high following President Donald Trump’s call to lower interest rates and crude prices. Futures tied to the broad index lost 0.1%, while Nasdaq 100 futures traded near its flatline. Futures on the Dow Jones Industrial Average fell 132 points, or 0.3%. Stocks got a boost Thursday after Trump said he would “demand that interest rates drop immediately” as he addressed world leaders in Davos, Switzerland. The president also said he would ask Saudi Arabia and other OPEC nations to lower the price of oil. The S&P 500 closed at a record and notched a fresh all-time intraday high in the session. “Trump’s Davos speech contained some ostensibly positive lines (he called for OPEC to lower oil prices, demanded central banks lower interest rates, and reiterated prior pledges to slash taxes and regulation) but there was very little either incremental or within his control,” Adam Crisafulli, founder of Vital Knowledge, said in a note. Optimism toward Trump’s pro-business policies pushed risk assets higher this week after his inauguration. Investors were also relieved that there have only been threats on the tariff front from Trump — instead of formal action — during his first few days in the White House. All three major averages are on track to post their second positive week. The Dow and the S&P 500 have gained 2.5% and 2%, respectively, this week, while the tech-heavy Nasdaq Composite is up about 2.2%. Investors are keeping an eye on the 10-year Treasury yield, which has been rising on the back of strong corporate earnings. BlackRock CEO Larry Fink said Thursday that Trump’s efforts to unleash capital in the private sector could stoke inflationary pressures and prompt the benchmark 10-year rate to retest the 5% level. “The better growth we are seeing in Corporate America may be contributing to the ability of 10-year yields to find a bottom for now,” Chris Hussey, a managing director at Goldman Sachs, said in a note to clients. U.S. Treasury yields dipped on Friday as investors reacted to President Donald Trump’s latest comments and anticipated further economic data. At 5:39 a.m. ET, the 10-year Treasury yield fell by 1 basis point to 4.632%. The 2-year Treasury yield slipped by nearly 2 basis points to 4.268%. Asia-Pacific markets climbed Friday, after the S&P 500 hit record highs overnight as U.S. President Donald Trump called for lower interest rates and cheaper oil prices. The Bank of Japan raised policy rate by 25 basis points to 0.5% — the highest since 2008 and in line with economists’ expectations. Following the decision, the Japanese yen weakened marginally to trade at 155.18 against the dollar. The country’s Nikkei 225 and Topix erased earlier gains to close flat at 39,931.98 and 2,751.04, respectively. South Korea’s Kospi advanced 0.85% to end the day at 2,536.80, while the Kosdaq rose 0.65% to close at 728.74. Australia’s S&P/ASX 200 rose for a third straight week. The index ended the day up 0.36% at 8,408.9. Mainland China’s CS1300 benchmark rose 0.77% to end the day at 3,832.86. Hong Kong’s Hang Seng index was up 1.67% as of its last hour of trade. Oil prices edged up on Friday but remained on track for a weekly decline after U.S. President Donald Trump issued a sweeping plan to boost U.S. production and demanded OPEC lower crude prices. Brent crude futures were up 32 cents, or 0.4%, at $78.61 a barrel, while U.S. West Texas Intermediate crude (WTI) was 31 cents higher, also adding 0.4%, at $74.93. For the week, Brent is down nearly 3% so far, and WTI down close to 4%. Gold prices rose nearly 1% on Friday, lingering near record high levels scaled in October, steered by U.S. President Donald Trump’s calls to lower interest rates and uncertainty surrounding his trade policies. Spot gold rose 0.9% to $2,776.97 per ounce and was up 2.8% for the week. Prices are at their highest since Oct. 31, when they hit a record high of $2,790.15. U.S. gold futures for February delivery rose 0.7% to $2,783.80 per ounce. The dollar hit a one-month low, making bullion less expensive for foreign buyers.
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