U.S. Stocks Surge as Strong Earnings and Trump's Agenda Boost Optimism

Wall Street rallied on Wednesday, propelled by robust earnings and heightened optimism for President Donald Trump's second-term initiatives.

The S&P 500 index surged to a record high above 6,100 during the session, but closed slightly below its all-time closing peak. Oracle, SoftBank, and semiconductor stocks soared following Trump's announcement of a $500 billion partnership for AI infrastructure expansion.

Strong financial results from Netflix, United Airlines, and Procter & Gamble lifted the markets earlier in the day. Netflix exceeded expectations, adding a record number of subscribers in the quarter and reaching over 300 million users by the end of 2024.

Analysts noted that 79% of S&P 500 companies that have reported thus far have surpassed earnings estimates, surpassing the 10-year average of 75%.

Traders also expressed enthusiasm for Trump's agenda, as evidenced by the rally in AI stocks. Oracle shares surged 7%, while SoftBank jumped 11%. Nvidia and Taiwan Semiconductor also rose by 4% and 2%, respectively.

"Strong earnings can continue driving equities higher despite potential headwinds," said José Torres, senior economist at Interactive Brokers. "Profits growing alongside the economy can overcome heavier interest rates, inflation uncertainty, fiscal imbalances, and stretched valuations."

At the close of trading:

* S&P 500: 6,086.37, up 0.61%
* Dow Jones Industrial Average: 44,156.73, up 0.3% (130.92 points)
* Nasdaq Composite: 20,009.34, up 1.28%

Related Events:

* Jamie Dimon expresses concern over "inflated" stock market.
* Harvard economist predicts recession in the second half of Trump's term.
* Crypto sell-off risk looms amid lack of regulatory clarity.

Commodities, Bonds, and Cryptocurrency:

* West Texas Intermediate crude oil declined 0.47% to $75.47 a barrel.
* Brent crude remained stable at $79 a barrel.
* Gold rose 0.39% to $2,754 an ounce.
* 10-year Treasury yield increased two basis points to 4.601%.
* Bitcoin fell 1.82% to $104,197.