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by Chad Shoop

Chad is a Chartered Market Technician (CMT) who specializes in stock and options trading. For over 12 years, he’s led some of the largest trading research firms on the planet.

With President Donald Trump’s first week of his second term coming to a close, Trump couldn’t have asked for a better start.

After signing dozens of executive orders to push his agenda forward, shares of the most popular stock trading index, the S&P 500, hit fresh all-time highs.

I’m sure this is a welcomed initial reception to his policies as he laid them out center stage at the World Economic Forum in Davos.

The bottom line was clear: manufacture in the U.S. or face tariffs.

During Trump’s first term, tariffs were a popular tool for Trump to spark negotiations and implement policy.

This term, Trump isn’t wasting any time and, as traders and investors, we can’t ignore this big-picture agenda in 2025.

Here’s what to expect next…

Trump’s Davos Address: A Pro-America Agenda

“If you don’t make your product in America, which is your prerogative, then very simply, you will have to pay a tariff.”

This hardline stance on trade, reminiscent of his earlier presidency, sent ripples across global industries.

European automakers, Asian tech manufacturers, and U.S.-based multinationals with overseas supply chains were all on alert. While the rhetoric wasn’t new, it’s timing — amid an already fragile global trade environment — added urgency to the markets.

In typical Trump fashion, he didn’t stop there.

He lashed out at the European Union, accusing it of unfairly targeting U.S. tech giants with regulatory crackdowns, and pushed NATO allies to raise their defense spending to 5% of GDP. Trump also turned his attention to Saudi Arabia, urging the kingdom to lower oil prices to aid in the resolution of the ongoing conflict in Ukraine.

Markets Rally to New Highs

Trump’s announcements delivered.

The stock market responded to this mix of economic nationalism and global negotiations with a surge. The S&P 500 broke through resistance to hit fresh all-time highs, rising 2.7% this week alone.

This marked one of the fastest starts to a presidential term in market history, with investors cheering Trump’s aggressive stance on bolstering U.S. industries.

And investors reacted to the news:

Tech Titans: Big Tech rallied despite concerns about regulatory pressure in the EU. Oracle (18%), Nvidia (8%), Microsoft (+5%), and Amazon (+5%) all surged as U.S. investors viewed Trump’s defense of American companies as a tailwind.
Defense and Aerospace: Trump’s call for NATO allies to increase defense spending was a boon for defense contractors. RTX jumped 6% this week, Northrop Grumman added 6% and Lockheed Martin increased 3% this week, benefiting from expectations of increased global military budgets.
Other Stocks: Netflix, the tech streaming giant, shares surged over 10%. Sofi, an innovative lending platform, as well as Carvana, the vending machine for cares, saw double-digit returns during the week. And Cameco, a uranium miner, shares jumped 13%. The reality is that there are a diverse group of stocks in the market making this push to all-time highs. Traders are signaling the risk is back on for targeting big trades.

What’s Next?

Trump’s first week will go down in the textbooks for markets and policy alike.

Trump’s bold moves on trade have shifted the narrative from uncertainty to opportunity, giving traders and investors plenty to think about as they position themselves for the year ahead.

As the dust settles, one thing is clear: today’s events underscore the importance of staying agile and informed.

Markets move fast, and those who can adapt to the latest trends will always stay one step ahead in the world of trading.

So buckle up, 2025 is already shaping up to be a wild ride.

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