Tech Rally Leads Stock Market Higher

The tech sector lifted the stock market on Wednesday, with tech stocks leading the gains following President Trump's announcement of a major investment in AI infrastructure.

The Nasdaq Composite (^IXIC) climbed nearly 1.3%, bolstered by a surge in Netflix shares after a strong earnings report. The S&P 500 (^GSPC) gained more than 0.6% to close just below its record high of 6,090.

Meanwhile, the Dow Jones Industrial Average (^DJI) rose 0.3%, coming off a gain of over 500 points on Tuesday.

Trump's AI Investment Sparks Tech Rally

President Trump announced a new $500 billion private-sector investment, dubbed "Stargate," to develop AI infrastructure in the US. Oracle (ORCL), ChatGPT creator OpenAI, and SoftBank (9984.T) were among those committing to the joint venture.

The announcement sent Oracle shares up over 6% in early trading, while SoftBank jumped over 11%. Big Tech giants Microsoft and Nvidia also gained roughly 4% during the day.

Earnings Season Continues

Corporate earnings continued to roll in, with Johnson & Johnson (JNJ) reporting better-than-expected sales and profits, although its stock slipped due to concerns over a strong dollar. Procter & Gamble (PG) shares rose after its sales also beat forecasts.

China-US Trade Tensions Resurface

Despite strong earnings, concerns about a Trump-induced trade war weighed on the market. On Tuesday, the president said he was considering imposing a 10% duty on China imports on Feb. 1, and he vowed to hit the EU with additional tariffs.

Chinese stocks fell on Wednesday as markets reacted to the new trade-defense plan.

Amazon Sets Record High

Amazon (AMZN) shares rose nearly 2%, hitting a new record high of over $234 per share. Other "Magnificent Seven" tech stocks, including Meta (META), Microsoft (MSFT), and Nvidia (NVDA), also gained ground.

Netflix Surges on Record Earnings

Netflix stock (NFLX) soared to all-time highs, trading over 13% higher in early trading after the company reported strong fourth-quarter earnings and a record number of new subscribers.