US Stocks Surge on Nasdaq Strength, Trump's AI Boost
The Nasdaq Composite (IXIC) soared on Wednesday, leading the rise in US stocks. Netflix (NFLX) shares reached a record high after reporting robust earnings. Meanwhile, President Donald Trump's announcement of a $500 billion AI investment plan buoyed tech stocks.
Nasdaq Leads the Charge
The Nasdaq Composite climbed over 1.3% on the back of Netflix's impressive earnings. The streaming giant's strong subscriber growth and optimistic revenue outlook spurred a surge in its stock price.
S&P 500 at All-Time Highs
The S&P 500 (GSPC) gained 0.6% and came close to its record closing high of 6,090. The tech-heavy index benefited from the strong performance of Netflix and other tech companies.
Dow Jones Modestly Higher
The Dow Jones Industrial Average (DJI) rose 0.3% after a significant gain of over 500 points on Tuesday. The index was influenced by Trump's AI push, which bolstered tech stocks within its components.
Trump's AI Initiative Boons Tech
Trump's latest policy move, dubbed "Stargate," aims to make the US a leader in artificial intelligence. The $500 billion investment plan, involving partnerships with Oracle, ChatGPT creator OpenAI, and SoftBank, sparked a rally in tech stocks.
Netflix Surges to Record Highs
Netflix shares soared over 13% in premarket trading after the company exceeded Wall Street expectations with its fourth-quarter earnings. The streaming service added a record number of subscribers and announced a $15 billion stock buyback, boosting its full-year revenue outlook.
S&P 500 Approaches All-Time High
The S&P 500 opened close to its all-time intraday record high of 6,099.97. The index's rise was fueled by the strong performance of tech stocks and positive earnings reports from companies like Johnson & Johnson and Procter & Gamble.
Conclusion
US stocks surged on Wednesday, with the Nasdaq leading the way on the back of Netflix's strong earnings. Trump's AI investment plan and the overall tech rally contributed to the broader market's optimism.