Market Surge: Trump’s AI Push and Earnings Boost Send Stocks Soaring
The US stock market experienced a significant upswing on Wednesday, driven by President Donald Trump’s ambitious plans to make the US a leader in artificial intelligence (AI) and a slew of strong earnings reports from major companies.
Tech Stocks Get a Boost
Trump’s $500 billion private-sector investment plan and rollback of Biden-era safety measures have given a significant boost to tech stocks. Oracle, a partner in the “Stargate” venture, saw its shares rise by roughly 7% on the prospect of higher AI spending. SoftBank, another key player in the project, saw its stock jump by 10% in Tokyo.
Netflix Soars on Record Subscriber Additions
Netflix shares surged more than 13% in early trading after the streaming giant reported record new subscriber additions, beating earnings and revenue estimates. This strong performance helped propel the Nasdaq Composite up nearly 1%, while the S&P 500 climbed 0.5%.
Corporate Earnings Continue to Impress
Johnson & Johnson posted quarterly sales and profit above estimates, although its stock slipped due to concerns about the impact of a strong dollar. Procter & Gamble, on the other hand, saw its shares pop after reporting sales that beat forecasts.
Trade War Worries Linger
Despite the market’s optimism, concerns about a potential trade war continue to simmer. Trump’s administration is considering imposing a 10% duty on China imports, and the president has vowed to hit the EU with additional tariffs. This has led to a decline in Chinese stocks, as markets react to the new trade-defense plan.
Elon Musk Weighs in on AI Infrastructure Project
Tesla CEO Elon Musk, a close Trump confidant, has expressed skepticism about the funding for the Stargate AI infrastructure project. Musk claims that SoftBank, a key investor in the project, has secured less than $10 billion in capital for the venture.
Economic Data and Earnings Ahead
Investors will be keeping a close eye on upcoming economic data, including MBA Mortgage Applications and the Leading Index. A slew of major companies, including Alcoa, Abbott Labs, and General Electric, are also set to report earnings.
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