By Johann M Cherian and Sukriti Gupta
(Reuters) -U.S. stock index futures rose on Wednesday, led by those tied to the Nasdaq, as investors cheered streaming giant Netflix’s strong quarterly performance and President Donald Trump’s multi-billion dollar support to bolster AI infrastructure.
Netflix jumped 14.9% in premarket trading after reporting a record number of subscribers in the holiday quarter, enabling it to increase prices for most service plans.
Other streaming companies such as Roku and Walt Disney added 4.2% and 1.3%, respectively.
“Stellar subscriber figures such as these would be hard to beat. Netflix is seen as a litmus test for the entire tech sector … the tech sector could be well placed to report strong earnings figures in the coming months,” said Kathleen Brooks, research director at XTB.
At 06:58 a.m. ET, Dow E-minis were up 83 points, or 0.18%, S&P 500 E-minis were up 26.25 points, or 0.43% and Nasdaq 100 E-minis were up 177.75 points, or 0.82%.
Among the top movers, Oracle gained 8.7%, a day after Trump said the company would invest $500 billion in AI infrastructure with OpenAI and SoftBank, even though there was no clarity on funding.
Server makers Dell and Super Micro added 4.5% and 2.6%, respectively, while AI winners Microsoft added 1% and Nvidia rose 2.7%.
“The news also boosted growth and productivity expectations more than they fueled the ballooning debt worries,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Data pointing to a strong economy amid cooling inflation and Trump’s moderate approach to tariffs have helped risk-taking since last week, with the benchmark S&P 500 less than 1% away from all-time highs. Stocks have also benefited from easing Treasury yields.
However, Trump has warned that tariffs on imports from China, Mexico, Canada and the European Union could be issued on Feb. 1, a reminder for markets that risks of a potential trade war and fresh inflation pressures prevailed.
Traders expect the Federal Reserve to leave interest rates unchanged when it meets next week and expect it to deliver its first rate cut this year in July, according to data compiled by LSEG.
Johnson & Johnson edged up 0.2% after the drugmaker reported fourth-quarter sales and profit above Wall Street estimates, driven by strong sales of its cancer treatments.
GE Vernova fell 2.1% after missing fourth-quarter revenue estimates.
Halliburton gained 1.2% after beating estimates for fourth-quarter profit, helped by higher demand for oilfield services and equipment from international markets.
