Trump Says ‘America Is Back’ After S&P Hits 7,000 Points For First Time In History

by Stefan J. Bos, Worthy News Chief International Correspondent

NEW YORK (Worthy News) – U.S. President Donald J. Trump said Wednesday that “America is back” after the S&P 500 Index, which tracks the 500 largest publicly traded companies in the United States, surpassed the 7,000-point mark for the first time in its history.

“The S&P 500 just hit 7000 for the FIRST TIME EVER. AMERICA IS BACK!!!” Trump wrote on his Truth Social platform.

The historic milestone was driven by strong investor optimism around artificial intelligence (AI) and expectations of robust earnings from major technology companies, despite ongoing geopolitical tensions and consumer concerns over high prices.

Analysts noted that the benchmark index’s climb between successive 1,000-point milestones has accelerated in recent years, reflecting mounting investor confidence in corporate America and the broader U.S. economy.

STOCK MARKET SURGE DESPITE HIGH PRICE WORRIES

The rally, however, appeared to highlight a disconnect between Wall Street’s enthusiasm and the everyday financial pressures facing millions of Americans.

On Tuesday, new data showed that U.S. consumer confidence dropped to its lowest level in more than 11 years, underscoring persistent concern about inflation and living costs.

The Conference Board, an independent U.S. economic research organization, said consumer confidence fell sharply in January 2026 to 84.5, the weakest level since May 2014.

Any reading below 100 on the long-running Consumer Confidence Index is considered a warning sign, with 84.5 indicating that households remain significantly worried about economic conditions.

The survey suggested consumers still feel squeezed by high prices, job uncertainty, and broader financial stress amid signs of slower growth.

INVESTORS PUSH STOCKS HIGHER AS TECH LEADS GAINS

Yet those concerns did little to rattle investor nerves as stocks continued to climb toward record territory.

It took about three years for the S&P 500 to rise from 4,000 to 5,000 points, but only around nine months to advance from 5,000 to 6,000, which it reached in November 2024.

After briefly topping 7,000, the index edged slightly lower, though it remained on track for its sixth straight day of gains — its longest winning streak since October.

Market strategists said investors are betting that strong corporate earnings, especially from tech giants, will justify the massive spending underway in AI development.

“You could definitely have a continuation of the rally in equities if the earnings season shows that AI expenditure is bringing in revenues,” said Jeff Leschen, managing director at Bramshill Investments.

AI BUBBLE FEARS RISE AMID DOT-COM COMPARISONS

Still, critics have warned that the surge in AI-related investment could be creating a bubble reminiscent of the late-1990s dot-com boom.

During that era, investors poured vast sums into internet companies — often called “dot-coms” because their names ended in “.com” — before the bubble burst in the early 2000s, sending tech stocks crashing.

Fast-forward to today, and investors are watching closely as Microsoft and Meta become among the first major firms to report earnings this week.

The results are expected to provide an early test of whether costly AI bets can deliver another year of strong growth and justify soaring valuations.

Analysts estimate that Microsoft, Meta, Amazon, and others could lift AI spending by roughly 30 percent, pushing total investment beyond $500 billion this year — an unprecedented outlay.

MAGNIFICENT SEVEN STOCKS DRIVE MARKET MOMENTUM

Those companies are part of the so-called “Magnificent Seven,” the group of seven mega-cap technology firms that have dominated U.S. market gains and now play an outsized role in the S&P 500’s direction.

Their performance has become central to investor confidence, particularly as AI is increasingly viewed as the next transformative economic force.

However consumer concerns and geopolitical tensions may still shape the outlook for AI and big tech stocks, with the U.S.–China rivalry over advanced chips and export controls posing the biggest risk, analysts say.

Additionally, investors and political leaders are concerned about Taiwan’s security because of its central role in global semiconductor production.

Elsewhere, ongoing conflicts such as the war in Ukraine and upheaval in the Middle East can drive energy price spikes, inflation, and market uncertainty, which often weigh on growth-focused tech shares reflected by the S&P 500.

And, shifting trade policies, supply-chain disruptions, rising cybersecurity threats, and tighter regulation—especially in Europe—are adding further pressure and unpredictability to the sector’s rapid expansion.

Despite these concerns, worries about an overheated market and consumer unease over prices, the S&P 500’s record-breaking rise suggested Wednesday that investors remain willing, for now, to give the tech sector the benefit of the doubt.

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