On January 22, Wall Street's indexes climbed, with the benchmark S&P 500 reaching a new intraday high. Investors were upbeat due to the positive quarterly report from streaming giant Netflix and President Donald Trump's private-sector investment plan in artificial intelligence (AI).
The tech sector surged by 2.5%, leading the S&P 500's industry indexes. Key players like Nvidia and Microsoft boosted the sector. Netflix, the top gainer in the S&P 500, closed 9.7% higher following a strong holiday quarter report that allowed the company to raise prices on most service plans.
Investor optimism centered around AI grew after Trump's announcement of an AI infrastructure investment plan involving Oracle, OpenAI, and SoftBank, despite lacking specific details. Only the tech and communications services sectors saw gains, while utilities sector suffered losses.
Irene Tunkel, Chief U.S. Equity Strategist at BCA Research, noted the market's focus on technology investments, stating, Everything else just cannot compete with it.
Shares of Oracle, ARM Holdings, and Dell rose, reflecting the market's emphasis on big tech. Matt Stucky, Chief Portfolio Manager for Equities at Northwestern Mutual Wealth Management, attributed the market rally to the AI news, particularly benefiting chip stocks.
The S&P 500 closed 0.61% higher at 6,086.37, near its previous record high. The Nasdaq Composite gained 1.28% to 20,009.34, and the Dow Jones Industrial Average rose 0.30% to 44,156.73.
Investors were buoyed by strong economic data, subdued inflation, and Trump's tempered approach to tariffs. Concerns remain over potential inflationary impacts from upcoming trade decisions.
Procter & Gamble saw gains after surpassing second-quarter estimates, while Johnson & Johnson shares declined despite positive fourth-quarter results. Ford, Textron, and Halliburton faced decreases due to various market factors.
Trading activity showed a mixed trend, with more declining stocks on both the NYSE and Nasdaq. In total, 13.89 billion shares were traded on U.S. exchanges, slightly lower than the 20-session average of 15.33 billion.