Stocks Rip To 6-Week High And Bitcoin Prices Top $100,000 As Trump Stokes Rally
May 8, 2025
Topline
The stock and cryptocurrency market comeback from the tariff crash was in full swing Thursday, as President Donald Trump expanded investors’ risk appetite.
Key Facts
You better go out and buy stock now,” Trump said Thursday from the Oval Office.
That direct encouragement accelerated an equity market rally which began as the president showed further inclination to back off of his most aggressive trade war plans and brandished a new trade deal with the U.K., the first such agreement of his second term.
All three primary barometers of the U.S. stock market surged to multi week highs, as the Dow Jones Industrial Average hit its highest level since April 2, the S&P 500 notched its top price since March 27 and the tech-heavy Nasdaq touched its highest level since March 26.
The Dow rose 570 points, or 1.4%, by early afternoon, while the S&P climbed 1.4% and the Nasdaq popped 1.8%.
Trump’s encouragement to buy stocks mirrored his messaging ahead of the 90-day pause he placed last month on the most aggressive of his country-by-country tariffs.
Bitcoin Breaks $100,000 In Crypto Boom
Digital assets rode optimism of trade war deescalation to solid gains, as the three most valuable tokens – bitcoin, ether and XRP – each rose at least 3.9% in the 24-hour period ending midday Thursday. Bitcoin, by far the most valuable crypto asset, topped $100,000 for the first time since Feb. 4 during the rally.
Tesla Stock, Magnificent 7 Lead Rally
All but one of the S&P’s 13 sectors gained Thursday, but it was the “magnificent seven” grouping of big tech companies championing the rally. Shares of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla were all up at least 0.8%, led by Tesla’s 4% gain, as the growth-focused septet enjoyed Wall Street’s move to risk. Bloomberg’s index tracking the seven stock rose 2%.
Key Background
The S&P tallied its longest winning streak in 21 years from April 22 through last Friday, erasing what was a 12% loss from April 2 through April 8 as Trump’s “reciprocal” tariffs wreaked havoc. The benchmark is still down 7% from its February peak. The bounce comes even as Trump engages in a stare down with the U.S.’ top monetary policy official, Federal Reserve Chairman Jerome Powell. The Fed declined to lower interest rates this week as it waits to see further evidence of how Trump’s tariffs will work their way through the economy, much to Trump’s dismay. Trump called Powell a “fool” and Thursday likened speaking with the central banker like “talking to a wall.”
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