On January 22, 2025, U.S. stock futures surged with the Nasdaq leading the charge, driven by a strong performance from Netflix and renewed excitement surrounding artificial intelligence (AI) investments. The rally comes on the heels of Netflix’s impressive earnings report, where the company announced a record number of new subscribers and increased subscription prices. As a result, Netflix’s stock surged by nearly 15% in pre-market trading, with other streaming platforms like Roku and Walt Disney also seeing gains.
The market’s positive momentum was further fueled by President Donald Trump’s announcement of a major $500 billion AI infrastructure initiative. The project, aimed at enhancing AI capabilities across the U.S., is set to involve key partners such as OpenAI, SoftBank, and Oracle. Oracle’s stock jumped nearly 9%, and chipmaker Nvidia also saw a 2.7% increase. The announcement comes alongside Trump’s proposed investments to bolster AI research and development, further energizing tech stocks.
The stock market also benefitted from strong economic data and the President’s more relaxed stance on tariffs, which boosted investor sentiment. However, Trump did warn of potential tariffs on imports from China, Mexico, Canada, and the European Union if necessary.
Alongside the tech-driven rally, bond yields on 10-year Treasury notes fell, while oil prices and Bitcoin saw upward movements, reflecting growing investor confidence. Large technology companies like Meta Platforms, Amazon, Microsoft, and Apple also posted significant gains, adding to the overall bullish sentiment.
With positive economic data and major developments in AI and tech, the U.S. stock market is poised for continued growth, signaling optimism for both the economy and the tech sector in the months ahead.
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