Tech Stocks Lead Market Higher on AI Enthusiasm and Record-Breaking Netflix Earnings

Tech stocks spearheaded the market rally on Wednesday, with Netflix (NFLX) shares soaring to record highs following its strong earnings report. The tech sector was boosted by a jump in Netflix shares and optimism over artificial intelligence (AI) following President Trump's announcement of a $500 billion private-sector investment in AI infrastructure.

The Nasdaq Composite (^IXIC) gained nearly 1.3%, supported by the surge in Netflix shares. The S&P 500 (^GSPC) climbed more than 0.6%, coming close to its record high of 6,090. The Dow Jones Industrial Average (^DJI) edged up 0.3%, following a surge of over 500 points on Tuesday.

Oracle (ORCL), a partner in the "Stargate" AI venture, continued to rise, gaining nearly 7% on expectations of increased AI spending. In Japan, SoftBank (9984.T) stock jumped 11%, while Arm Holdings (ARM) soared almost 16%.

Netflix's Earnings Beat Spurs Rally

Netflix shares surged 10% after the company reported a record 18.9 million new users in the fourth quarter, along with revenue and earnings that surpassed expectations. The streaming giant also announced a $15 billion stock buyback and increased its full-year revenue outlook.

AI Enthusiasm Boosts Tech Stocks

Trump's plan to make the US an AI leader through the "Stargate" investment sparked enthusiasm for AI-related stocks. Oracle rallied over 6%, while SoftBank gained more than 11%. Tech giants Microsoft and Nvidia also gained around 4% on the day.

Corporate Earnings in Focus

Earnings season continued, with Johnson & Johnson (JNJ) reporting higher-than-expected quarterly sales and profit, but its stock dipped due to concerns over the impact of a strong dollar. Procter & Gamble (PG) shares jumped after its sales also beat forecasts.

Trump's Impact on Markets

Market movements remain sensitive to President Trump's policies. Despite his announcement of considering imposing a 10% duty on China imports, US stocks closed higher on Wednesday. However, stocks in China fell amid concerns over the new trade-defense plan.

Key Economic Data and Events

On Thursday, the market will closely monitor economic data releases, including MBA Mortgage Applications and the Leading Index. Several companies, including Alcoa (AA) and Abbott Labs (ABT), will also report their quarterly results.