Market Surge: Tech Stocks Soar Amid AI Investment Boom
The Nasdaq Composite led the charge on Wednesday, surging over 1.3% as Netflix stock reached an all-time high following its impressive earnings report. The S&P 500 and Dow Jones Industrial Average also saw significant gains, with the S&P 500 hovering near its record closing high of 6,090.
Trump’s AI Push Drives Tech Rally
President Donald Trump’s announcement of a $500 billion private-sector investment plan to boost artificial intelligence infrastructure in the US has sent tech stocks soaring. The plan, dubbed “Stargate,” has brought together major players like Oracle, OpenAI, and SoftBank, with Oracle’s stock jumping 7% on the news. The president’s commitment to investing in AI has sparked enthusiasm for a range of stocks tied to the emerging technology, with Nvidia and Super Micro Computer both up over 4%.
Netflix Stock Skyrockets
Netflix stock surged over 13% to an all-time high, driven by its impressive fourth-quarter earnings results. The streaming giant reported a whopping 18.9 million new users in the quarter, with revenue and earnings beating expectations. The company also announced a $15 billion stock buyback and boosted its full-year revenue outlook.
Johnson & Johnson Beats Estimates
Johnson & Johnson posted quarterly sales and profit above estimates, but its stock slipped as investors weighed the impact of a strong dollar. The company reported total sales of $88.8 billion for 2024, up 4.3% compared to 2023.
Procter & Gamble Sales Beat Forecasts
Procter & Gamble’s sales also beat forecasts, sending its stock higher. The company’s strong performance was driven by its beauty and grooming segments.
Trade Worries Linger
Despite the market rally, trade worries continue to weigh on investors’ minds. President Trump has threatened to impose a 10% duty on China imports on February 1, and has vowed to hit the EU with additional tariffs. Stocks in China fell on Wednesday as markets were rattled by the new trade-defense plan.
Earnings Season Continues
The earnings season continues, with major companies like Alcoa, Abbott Labs, and Halliburton reporting their quarterly results. Investors will be closely watching these reports for signs of strength in the economy.
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