Trump praises US economy as S&P 500 closes at record 7,799

President Donald Trump said the US economy is performing "incredibly well" and praised recent stock market gains, speaking to reporters at Andrews Joint Base on Friday as the S&P 500 closed at a record 7,798.99.

"The disinflation ducks are starting to line up, and with oil also backing off, the market has steadily stripped away the case for another near-term Fed hike," Stephen Innes, managing partner at SPI Asset Management, said.

The S&P 500 rose 0.65 percent to 7,798.99 on Thursday, its record closing high, while the Dow Jones Industrial Average added 0.13 percent to 53,839.99 and the Nasdaq Composite climbed 0.81 percent to 26,803.03. The gains followed producer price data showing wholesale inflation at 4.7 percent in July, down from 5.5 percent in June and slightly better than economists expected. Technology stocks led the advance on Wall Street.

Trump's endorsement could reinforce retail investor confidence and provide short-term bullish momentum for equities, though the remarks carry no specific policy announcements. The Federal Reserve's September policy meeting remains the key focus, with markets pricing a reduced probability of a hike after the tame inflation data.

Trump also referenced the USS Abraham Lincoln aircraft carrier during his remarks at JBA, saying "the ship is sailing," without elaborating. The comments come as the White House announced tariffs of up to 100 percent on imports of unmanned drones and their components, set to take effect in 21 days. The US Court of International Trade also ruled in favor of Trump's 2025 decision to rescind a "de minimis" exemption for tariffs on imports valued under $800, according to Reuters.

Global Markets Mixed as Investors Digest Trump Remarks

Asian markets were mixed on Friday. Japan's Nikkei 225 gained 0.6 percent to 68,713.80, while South Korea's Kospi jumped 2.4 percent to 6,977.94. Hong Kong's Hang Seng fell 1.1 percent to 25,116.85, and the Shanghai Composite was nearly unchanged at 3,927.18.

In Europe, Britain's FTSE 100 slipped 0.3 percent to 10,744.31, while Germany's DAX rose 0.5 percent to 26,442.54 and France's CAC 40 edged 0.1 percent lower to 8,648.48.

"Nifty is expected to trade sideways with a marginal negative bias as escalating geopolitical tensions in West Asia and higher crude prices weigh on sentiment," said Siddhartha Khemka, head of research at Motilal Oswal Financial Services.

Oil prices resumed climbing early Friday, with Brent crude gaining 1 percent to $87.96 per barrel and US benchmark WTI rising 1.7 percent to $82.60. The moves follow a 2 percent decline in the previous session, as traders weighed weaker global demand against supply concerns from Middle East tensions. Brent has swung between $72 and $102 in July as hopes rose and fell over a potential US-Iran deal that could allow oil tankers to freely exit the Middle East through the Strait of Hormuz.

The US dollar fell to 159.16 Japanese yen from 159.50, while the euro rose to $1.1556 from $1.1530.

Trump's pattern of commenting on market performance dates back to his first term, when he frequently touted record stock market levels on social media and in public remarks. The current rally has been driven by cooling inflation and expectations that the Fed may hold rates steady, with the July PPI report providing the latest evidence of disinflation. The producer price index was unchanged month-over-month in July, following a revised 0.1 percent decline in June.

The Fed's next policy meeting is scheduled for September. If inflation continues to trend lower, the central bank could hold rates unchanged, which would support further equity gains. Conversely, any resurgence in price pressures could force a hike, potentially reversing the record-setting rally. Trump has been lobbying for lower interest rates, adding political pressure to the Fed's decision-making process.

This article is for informational purposes only and does not constitute investment advice.