Remember when they told us that market breadth was bad?
Today will be the 6th consecutive day with more than 68% of S&P 500 components higher. That is the longest streak ever ???? pic.twitter.com/IVRNEReui3
— Ryan Detrick, CMT (@RyanDetrick) January 21, 2025
The Nasdaq led US stocks higher on Wednesday as Netflix stock surged to a record, while Donald Trump’s boost to AI demand hopes outweighed fresh tariff worries. The Nasdaq Composite rose more than 1.3%, bolstered by a jump in shares of tech companies. The S&P 500 climbed 0.6% to hover near its record closing high of 6,090.
#MarketAlert | USA: S&P 500 opens 0.9% higher, Nasdaq 100 up 0.6%#Netflix #Oracle pic.twitter.com/dFTcHUpeZv
— ET NOW (@ETNOWlive) January 22, 2025
Meanwhile, the Dow Jones Industrial Average was up 0.3%, following a rise of over 500 points, with investors on alert for any fresh moves in the president’s fast-evolving policy landscape. Trump’s recent push to bolster AI initiatives and roll back certain Biden-era safety measures has provided momentum to technology stocks. Shares in Oracle, a partner in the “Stargate” venture, continued to rise, up 7% on the prospect of higher AI spending.
In Tokyo, SoftBank stock jumped 11%.
Stock Market LIVE: Sensex turns flat, Nifty tests 23k; all sectors in red but IThttps://t.co/bv6tlMrXHF
— ET NOW (@ETNOWlive) January 22, 2025
However, investors were cautious amidst heightened trade war concerns, sparked by Trump’s declaration on Tuesday to impose new tariffs on EU imports starting Feb. 1.
These tensions escalated despite a sense of relief that China’s trade dynamics remained unchanged for now. Corporate earnings continued to roll in.
Wall Street's main indexes rose on Tuesday, with the S&P 500 and the Dow indexes hitting their highest in more than a month, as investors assessed Donald Trump's first actions as US president and breathed relief that he did not start his second term with blanket tariff increases.
— CommSec (@CommSec) January 21, 2025
Before the bell, Johnson & Johnson reported earnings, but its stock slipped as investors weighed the impact of a strong dollar.
Shares of Procter & Gamble, however, saw an uptick.
nasdaq rises amid Netflix gains
In other business news, Warren Buffett announced he would no longer participate in interviews, marking a notable shift as the 94-year-old CEO of Berkshire Hathaway prepares for the future leadership of the company.
Buffett has been gradually transitioning some of his holdings and offered insights on estate planning, underscoring the importance of managing and distributing large fortunes. PepsiCo’s CEO stated that he is not worried about potential criticisms from the new Trump administration regarding the food industry, citing Pepsi’s leadership in reducing sodium, sugar, fat, and artificial colors in its products. The sentiment around packaged foods stocks has soured due to regulatory pressures and public health advocates, but PepsiCo maintains a proactive stance.
Gold prices continued to gain as traders assessed risks from President Trump’s latest tariff threats. The precious metal traded around $2,769, near recent highs, as investors sought safety amid uncertainties surrounding US economic policies. Lastly, discussions are ongoing about Trump’s targeted tariffs on Canada and other economic partners.
Analysts suggest that Canada, unlike Mexico, may be particularly vulnerable due to upcoming talks concerning the US-Mexico-Canada trade agreement, set for review in 2026. Higher interest rates may be a persistent feature of the current economic landscape. The 10-year Treasury yield has spiked to its highest level in over a year.
BlackRock’s Investment Institute posits that structural forces, such as an aging labor force and rising debt, will sustain higher rates. Despite this, they believe strong corporate fundamentals can still drive stock market gains. Overall, the tech rally continued to lead the market higher, with strong showings from major technology firms bolstering investor confidence.
