Nasdaq Rises Led by Netflix Surge, Amid Trump's AI Boost
The Nasdaq Composite (^IXIC) surged over 1.3%, bolstered by a jump in Netflix shares following its strong earnings report. The S&P 500 (^GSPC) climbed 0.6%, hovering near its record closing high of 6,090.
Trump's AI Push Spurs Tech Rally
President Donald Trump's announcement of a $500 billion AI infrastructure investment plan, called "Stargate," ignited enthusiasm in tech stocks. Oracle (ORCL), a partner in the venture, saw its shares rise 7%. SoftBank (9984.T, SFTBY) gained 11% in Tokyo.
Johnson & Johnson Falls Despite Earnings Beat
Johnson & Johnson (JNJ) reported quarterly sales and profit above estimates, but its stock slipped due to concerns about the impact of a strong dollar. Procter & Gamble (PG) shares, however, surged after beating sales forecasts.
Higher Interest Rates May Be the New Normal
BlackRock's Investment Institute believes that higher interest rates are likely to persist due to structural factors such as an aging workforce and rising debt levels. However, they believe that stocks can continue to climb despite this as long as fundamentals remain strong.
Tech Rally Leads the Market
The S&P 500 is on track for a record close, driven by a rally in tech stocks. Information Technology and Communication Services sectors outperformed, with Netflix's 10% surge leading the latter.
Amazon Hits Record High
Amazon (AMZN) shares reached an all-time high of over $234, amidst the broader tech rally. Other "Magnificent Seven" tech stocks, including Meta (META), Microsoft (MSFT), and Nvidia (NVDA), also gained.
Netflix Stock Reaches All-Time Highs
Netflix (NFLX) surged over 13% after reporting a record number of subscribers and beating revenue and earnings expectations. The company announced a $15 billion stock buyback and raised its full-year revenue outlook.
S&P 500 Opens Near Record High
The S&P 500 opened at 6,079.82, just below its all-time intraday record high of 6,099.97. The Nasdaq Composite rose nearly 1%, led by Netflix's earnings boost.