President Donald Trump told global leaders at the World Economic Forum in Davos on Wednesday that the Dow Jones Industrial Average, as tracked by the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), is headed for 50,000, adding that the stock market could double “in a relatively short period of time.”
Trump Dismisses Recent Market Decline As “Peanuts”
Speaking at the annual gathering of business and political leaders, Trump downplayed Tuesday’s selloff. The “stock market took the first dip yesterday because of Iceland, so Iceland already cost us a lot of money, but that dip is peanuts compared to what it’s gone up. And we have an unbelievable future that stock market is going to be doubled,” Trump said during his special address.
The Dow traded at 48,819.98 as of Wednesday morning, up 331.39 points or 0.68%.
Markets Rebound Following Tuesday Losses
U.S. equities climbed on Wednesday following Tuesday’s risk-off session, which was triggered by Trump’s trade stance toward Europe.
Tuesday’s decline saw the S&P 500 fall 1.5% to 6,840, marking its worst session since late November. The selloff came after Trump threatened several European countries with an additional 10% tariffs starting Feb. 1 if negotiations over Greenland control fail.
Wednesday Trading Shows Renewed Strength
Energy stocks led Wednesday’s gains, with the Energy Select Sector SPDR Fund (NYSE:XLE) jumping 2.5%. Intel Corp. (NASDAQ:INTC) emerged as the session’s top performer among mega-cap names, surging 10.4%.
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