Traders work on the floor of the New York Stock Exchange on Jan. 15, 2025, in New York City.
David Dee Delgado | Getty Images
Stocks climbed on Wednesday, with the S&P 500 nearing an all-time high again, as technology shares such as Oracle and Nvidia rallied on artificial intelligence optimism, while Netflix and Procter & Gamble gained after strong quarterly results.
The S&P 500 advanced 0.5%, within half of a percentage point of its intraday record. It also briefly traded above its record closing high. The Nasdaq Composite popped 1.1%, underscoring the outperformance of tech names. The Dow Jones Industrial Average rose 67 points, or 0.2%, boosted by Procter & Gamble’s gain of more than 3% on the back of strong earnings.
Netflix shares soared 12% after the company surpassed 300 million paid memberships. It’s fourth-quarter earnings and revenue also topped analyst expectations. The streamer’s results got a boost from hit series “Squid Game” and live sporting events such as the Jake Paul and Mike Tyson boxing match.
Oracle shares jumped 5% and Nvidia climbed about 3% as investors continued to pile into the AI trade following an announcement from the new White House. President Donald Trump announced a joint venture dubbed “Stargate” on Tuesday, with OpenAI, Oracle and Softbank to invest “$500 billion, at least” in AI infrastructure within the United States. Oracle rose 7% on Tuesday on the news.
“Netflix’s strong earnings, coupled with the largest increase in paid memberships and announced price increases, are propelling the stock price significantly higher today. At the same time, the announcement of a $500 billion AI infrastructure investment through Stargate is boosting tech stocks higher,” said Leslie Thompson, chief investment officer at Spectrum Wealth Management. “Animal spirits seem to be in play as the first 100 days of the new administration commence.”
Stocks were higher even after President Donald Trump said Tuesday he’s considering a 10% tariff on China beginning as soon as Feb. 1. That comes after he mulled levies on Canada and Mexico earlier in the week.
Though tariffs have been considered an overhang on markets, stocks have rallied this year on optimism about the new business-friendly administration following a December pullback. The S&P 500 was down 2.5% in December, but is already up 3% in 2025.
“Investors are applauding the recent round of market-friendly executive orders from the new Trump administration, particularly when it comes to deregulation and energy,” said John Creekmur, chief investment officer at Creekmur Wealth Advisors. But, “there is also the fear of tariffs lurking in the background.”
