Market Momentum Shifts as Trump’s AI Push Takes Center Stage
The US stock market is experiencing a significant boost, driven by President Donald Trump’s latest initiative to make the country a leader in artificial intelligence (AI). This development has overshadowed fresh tariff threats, sending tech-heavy Nasdaq 100 futures soaring 0.8% and S&P 500 futures climbing 0.4%. Dow Jones Industrial Average futures also saw a moderate increase of 0.1%.
Tech Stocks Surge on AI Investment Plan
Trump’s $500 billion private-sector investment plan and rollback of Biden-era safety measures have given a significant lift to tech stocks. Oracle, a partner in the “Stargate” venture, saw its shares rise almost 9% in pre-market trading, fueled by the prospect of increased AI spending. SoftBank, a Japanese conglomerate, experienced a 10% stock surge in Tokyo.
Netflix Shines with Record Subscriber Additions
Meanwhile, Netflix stock skyrocketed 15% in early trading after the company reported record new subscriber additions and beat earnings and revenue estimates. This impressive performance has lifted investor spirits, despite growing concerns about a potential trade war.
Trade Tensions Escalate
President Trump’s administration is considering imposing a 10% duty on China imports starting February 1, in addition to vowing to hit the EU with additional tariffs. This move has rattled markets, causing Chinese stocks to fall on Wednesday. The stepped-up tariff threats come on the heels of Tuesday’s rally, which was fueled by relief that China wasn’t targeted in Trump’s initial policy moves.
Earnings Season Continues
Johnson & Johnson posted quarterly sales and profit above estimates, thanks to strong sales of cancer treatments. Procter & Gamble also saw its shares rise after reporting sales that beat forecasts. As earnings season continues, investors remain on high alert for any fresh developments in Trump’s fast-paced policy overhaul.
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