Haven Assets in Demand as Forceful Trump Sworn In: Markets Wrap

(Bloomberg) -- Investors shifted into haven assets after Donald Trump was sworn in as the nation’s 45th president, with Treasuries rising with gold following a fiery inauguration speech that promised to upend the political establishment.

The S&P 500 Index’s advance was cut by about three-quarters as Trump addressed the country for the first time as president. Treasuries turned positive and gold extended gains as the Republican said he’d place American interests at the forefront of his agenda, with unclear implications for world trade and military alliances. The Bloomberg Dollar Spot Index fell.

Investors pulled back from post-election trades, adding to the impression that the rally sparked by Trump’s proposals for pro-growth policies may be coming to an end. The president’s combative, populist address aimed squarely at his aggrieved supporters and made little effort to reach beyond his political base or reassure foreign leaders. The Trump administration vowed to withdraw from the Trans-Pacific Partnership and renegotiate the North American Free Trade Agreement.

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Here are the main market moves today:

Stocks

• The S&P 500 Index advanced 0.3 percent to 2,270.48 at 4 p.m. in New York. The index fell 0.2 percent in the four-day week. It’s virtually unchanged since the day before the Federal Reserve raised interest rates.
• Banks have led declines in the holiday-shortened period, as Goldman Sachs Group Inc. slid more than 5 percent, paring a rally that took it more than 30 percent higher following Trump’s election.
• The Stoxx Europe 600 Index traded little changed as declines in miners offset gains in energy shares.

Currencies

• The Bloomberg Dollar Spot Index fell 0.4 percent, extending losses after the inauguration. The gauge fell for a fourth straight weekly loss, its longest slide since February.
• The Mexican peso jumped 1.5 percent to $21.6263.

Commodities

• West Texas Intermediate crude climbed for the second day, as Saudi Arabia said OPEC and other countries are on their way to achieving promised production cuts.
• Oil gained 2 percent to settle at $52.42 a barrel and narrowing a weekly loss to 0.5 percent.
• Gold futures advanced 0.6 percent to $1,208.40 an ounce. The metal has gained 1 percent this week, touching the highest level since November on Tuesday.

Bonds

• The yield on 10-year Treasuries fell to 2.46 after briefly touching 2.5 percent, the highest level since Jan. 3.