The Dow Jones Industrial Average hit an all-time high on Friday, surging to almost 45,000 and marking an over six percent rise for the year. (It has since retreated from that all-time high, but not by much.)
Despite liberal economists’ predictions of the apocalypse, the markets have performed well since President Donald Trump took office:
The blue-chip Dow opened at a record high Friday, as UnitedHealth's shares jumped after Berkshire Hathaway raised its stake in the health insurer, while expectations of an interest rate cut in September also lifted the mood.
The Dow Jones Industrial Average rose 248.7 points, or 0.55%, at the open to 45,159.91. The S&P 500 rose 8.8 points, or 0.14%, at the open to 6,477.38, while the Nasdaq Composite dropped 1.3 points, or 0.01%, to 21,709.336 at the opening bell.
As we’ve reported, Trump has grown increasingly frustrated with Federal Reserve Chairman Jerome Powell’s refusal to lower interest rates despite the fact that inflation has not soared the way it did when Joe Biden was in office.
READ MORE: July Inflation Numbers Undershoot Economists' Estimates
Fed Chair Ignores Trump's Blistering Criticisms, Goes His Own Way on Interest Rates
Powell’s inaction on rates has caused many to accuse him of politicizing the Fed, considering he lowered them before the ’24 presidential election—giving rise to accusations that he was holding out a helping hand to then-Democrat candidate Kamala Harris.
That being said, investors are bullish on the hope that he will finally lower rates in September:
More broadly, the main U.S. stock indexes are on track for their second week of gains, buoyed by expectations that the Fed could restart its monetary policy easing cycle with a 25-basis-point interest rate cut in September.
The central bank last lowered borrowing costs in December and said U.S. tariffs could add to price pressures. However, recent labor market weakness and signs that tariff-induced inflation was yet to reflect in headline consumer prices have made investors confident of a potential dovish move next month.
Doing so would deliver relief for working Americans and bring mortgage, credit card, and business loan rates down from near 20-year highs. President Trump deserves a Fed chair focused on facts and fundamentals—not politics.
Friday’s surge is attributed to big news regarding health insurance giant UnitedHealth:
The move higher was powered by an 11% gain for shares of UnitedHealth (UNH), following news late Thursday that Warren Buffett's Berkshire Hathaway had taken a stake in the struggling insurer.
The Dow Jones Industrial Average is only one indication of the health of the nation’s economy, but the many pundits who predicted a mighty crash because of Trump’s tariffs aren’t looking too good right now.
Editor's Note: President Trump is leading America into the "Golden Age" as Democrats try desperately to stop it.
Help us continue to report on President Trump's successes. Join RedState VIP and use promo code FIGHT to get 60% off your membership.