Tech Stocks Soar as Trump’s AI Push Outshines Tariff Fears
The US stock market is off to a strong start on Wednesday, with the Nasdaq leading the charge. The tech-heavy index surged 0.8% in pre-market trading, driven by a surprise earnings boost from Netflix and a renewed focus on artificial intelligence (AI) investments.
AI Ambitions Fuel Tech Rally
President Trump’s plan to inject $500 billion into the private sector to make the US a leader in AI has given a significant lift to tech stocks. Oracle, a partner in the “Stargate” venture, saw its shares jump nearly 9% in pre-market trading, while SoftBank’s stock soared 10% in Tokyo. The push for AI dominance has overshadowed concerns about Trump’s tariff threats, at least for now.
Earnings Season Heats Up
Netflix’s impressive earnings report, which included record new subscriber additions and beats on earnings and revenue, sent its stock soaring 15% in early trading. Johnson & Johnson and Procter & Gamble also posted strong quarterly results, with sales and profit above estimates. The earnings season is shaping up to be a bright spot in an otherwise tumultuous market.
Tariff Tensions Simmer
Despite the upbeat mood, trade tensions are still simmering. Trump’s administration is considering imposing a 10% duty on China imports, and the president has vowed to hit the EU with additional tariffs. Chinese stocks fell on Wednesday as markets reacted to the new trade-defense plan. Oil prices rose, while gold eased back from an 11-week high.
Corporate Earnings Roundup
Before the bell, several major companies reported their quarterly results. Alcoa, Abbott Labs, Ally Financial, Comerica, Discover Financial Services, GE Vernova, Halliburton, Steel Dynamics, and Travelers are among the companies that released their earnings.
Economic Data and Market Movers
The MBA Mortgage Applications report for the week ending January 17 and the Leading Index for December are among the key economic data releases scheduled for today. Meanwhile, investors will be keeping a close eye on the ongoing trade tensions and their impact on the market.
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