Market Surge: Tech Stocks Lead the Way
The market saw a significant surge on Wednesday, with tech stocks leading the charge. The Nasdaq Composite rose nearly 1.3%, while the S&P 500 climbed more than 0.6% to close just shy of its record high. The Dow Jones Industrial Average was up 0.3%, building on Tuesday’s gains.
AI Investment Boosts Tech Stocks
President Trump’s announcement of a $500 billion private sector investment in artificial intelligence infrastructure, dubbed “Stargate,” sent tech stocks soaring. Oracle, SoftBank, and OpenAI are among the companies committing to the joint venture. The news sparked enthusiasm for AI-related stocks, with Nvidia and Super Micro Computer both up more than 4%.
Netflix Hits Record High
Netflix stock surged to an all-time high, trading over 13% higher, after the company reported strong fourth-quarter earnings results. The streaming giant added 18.9 million users in the quarter, while revenue and earnings beat expectations. Netflix also announced a $15 billion stock buyback and boosted its full-year revenue outlook.
Corporate Earnings Continue to Roll In
Johnson & Johnson posted quarterly sales and profit above estimates, but its stock slipped as investors weighed the impact of a strong dollar. Procter & Gamble’s sales also beat forecasts, sending its shares higher. Meanwhile, PepsiCo CEO Ramon Laguarta expressed confidence in the company’s ability to transform the food industry, despite criticism from the new administration.
Gold Prices Rise Amid Tariff Concerns
Gold prices continued to gain as traders assessed policy risk stemming from President Trump’s latest tariff comments. The precious metal was trading around $2,769, near levels last seen in October.
Interest Rates and Inflation
BlackRock’s Investment Institute believes the higher rate environment is likely here to stay, citing structural forces such as aging labor forces and rising debt. However, the firm doesn’t believe a push higher in the 10-year Treasury yield above 5% is a reason to be underweight equities.
Canada in the Crosshairs
President Trump’s plan to impose 25% blanket duties on Canada and Mexico has sparked concerns about the impact on trade. Canada may be particularly vulnerable, with talks centered around goods central to the US/Canada trading relationship, such as lumber and dairy.
Warren Buffett’s Legacy
Investing legend Warren Buffett continues to pare down his schedule, but remains committed to his philanthropic efforts. Berkshire Hathaway’s annual shareholder meeting is set for May, and Buffett’s annual report will be published in February.
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