March Nasdaq 100 E-Mini futures (NQH25) are trending up +0.82% this morning as optimism over more artificial intelligence spending under Donald Trump and strong quarterly results from Netflix boosted sentiment.
U.S. President Donald Trump announced Tuesday billions of dollars in private-sector investments aimed at building artificial intelligence infrastructure in the United States. OpenAI, SoftBank, and Oracle announced plans to create a new company, named Stargate, which will develop “the physical and virtual infrastructure to power the next generation of AI,” including data centers around the country. The companies will initially invest $100 billion in the project, with additional firms expected to join the venture, bringing total investment in the program up to $500 billion over the coming years. The project is expected to create over 100,000 jobs, with construction already in progress in Texas. “We’re starting off with tremendous investment coming into our country at levels that nobody’s really ever seen before,” Trump said at the White House.
Netflix (NFLX) surged over +14% in pre-market trading after the streaming giant reported stronger-than-expected Q4 results, raised its 2025 revenue guidance, and announced a $15 billion boost to its share repurchase program.
In yesterday’s trading session, Wall Street’s three main equity benchmarks closed in the green, with the S&P 500 notching a 1-month high, the Dow notching a 5-week high, and the Nasdaq 100 notching a 2-week high. Vistra Corp. (VST) surged over +8% and was the top percentage gainer on the S&P 500 after Evercore ISI resumed coverage of the stock with an Outperform rating and a price target of $202. Also, 3M Company (MMM) climbed more than +4% and was the top percentage gainer on the Dow after the industrial conglomerate posted better-than-expected Q4 adjusted EPS. In addition, Moderna (MRNA) gained over +5% after the drugmaker secured a $590 million government contract to accelerate the development of its bird flu vaccine. On the bearish side, Walgreens Boots Alliance (WBA) slumped more than -9% and was the top percentage loser on the S&P 500 after the U.S. Justice Department sued the company for allegedly contributing to the opioid crisis. Also, Apple (AAPL) slid over -3% and was the top percentage loser on the Dow after Jefferies downgraded the stock to Underperform from Hold with a price target of $200.75.
“For the first time this year, bulls have some momentum to work with,” said Chris Larkin at E*Trade from Morgan Stanley. “Stocks are coming off their biggest up week in more than two months, as traders embraced cooler-than-expected inflation data and strong earnings from big banks. With a light economic calendar this week, earnings may dictate whether the S&P 500 can post back-to-back up weeks for the first time since early December.”
The fourth-quarter earnings season is gathering pace, with investors awaiting reports from notable companies today, including Procter & Gamble (PG), Johnson & Johnson (JNJ), Abbott Laboratories (ABT), Kinder Morgan (KMI), and Travelers (TRV). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +7.5% increase in quarterly earnings for Q4 compared to the previous year.
On the economic data front, investors will focus on the Conference Board’s Leading Economic Index for the U.S., which is set to be released in a couple of hours. Economists expect the December figure to be -0.1% m/m, compared to the previous number of +0.3% m/m.
U.S. rate futures have priced in a 99.5% probability of no rate change at next week’s monetary policy meeting.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.570%, down -0.09%.
The Euro Stoxx 50 Index is up +0.77% this morning, supported by global tech sector gains after Donald Trump announced a $500 billion AI infrastructure investment in the U.S. Healthcare and technology stocks outperformed on Wednesday. The rally came even as U.S. President Donald Trump promised to impose new tariffs on the European Union and said that his administration was considering a 10% tariff on Chinese goods starting February 1st. Meanwhile, EU Commissioner Valdis Dombrovskis stated that Europe would take proportional action against any U.S. tariffs to safeguard the region’s economic interests. Investors are also paying close attention to remarks from European Central Bank officials at the World Economic Forum in Davos. ECB President Christine Lagarde said that policymakers are confident inflation will reach the central bank’s target during 2025. Also, ECB policymaker Klaas Knot expressed support for near-term rate cuts in an interview earlier on Wednesday. The central bank is widely expected to reduce its policy interest rate by 25 basis points next week, marking the first of what is anticipated to be at least four cuts this year. In corporate news, Adidas Ag (ADS.D.DX) climbed over +6% after the athletic apparel maker reported better-than-expected preliminary Q4 results.
The European economic data slate is mainly empty on Wednesday.
Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.89% and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.58%.
China’s Shanghai Composite Index closed lower today after U.S. President Donald Trump reiterated a threat to impose new tariffs on Chinese goods. Property stocks led the declines on Wednesday. President Trump stated on Tuesday that his administration was considering levying a 10% punitive duty on Chinese imports as soon as next month due to ongoing shipments of fentanyl from China to the U.S. via Mexico and Canada. That marked the end of brief relief seen in Tuesday’s trading session, following Trump’s decision to refrain from announcing any China-specific tariffs during his first day back in office on Monday. Nomura analysts suggested that volatility in equity markets will persist as long as U.S. tariff risks remain. Meanwhile, at the annual World Economic Forum in Davos, Switzerland, Chinese Vice Premier Ding Xuexiang said that his nation will increase its imports “to promote balanced trade” and stressed that there are no winners in a trade war. In corporate news, New Oriental Education & Technology tumbled over -24% in Hong Kong after the education company posted Q2 earnings that missed analyst expectations.
Japan’s Nikkei 225 Stock Index ended higher and hit a 2-week high today as Trump’s plan for an investment push in the AI sector boosted sentiment. Technology and electronics stocks led the gains on Wednesday. Meanwhile, investors are bracing for the Bank of Japan’s monetary policy decision later this week. Kyodo News reported that the BOJ is leaning towards a decision to raise interest rates on Friday. That reinforces recent speculation that the central bank will raise rates by 25 basis points. In other news, Japan’s largest business lobby, Keidanren, and trade unions commenced annual labor talks on Wednesday, which are expected to result in another year of significant wage increases. In corporate news, SoftBank Group jumped more than +10% after Trump named the tech start-up investor as a participant in the “Stargate” AI joint venture. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -2.33% to 21.00.
Pre-Market U.S. Stock Movers
Netflix (NFLX) surged over +14% in pre-market trading after the streaming giant reported stronger-than-expected Q4 results, raised its 2025 revenue guidance, and announced a $15 billion boost to its share repurchase program.
Oracle (ORCL) advanced more than +8% in pre-market trading following the announcement of the $500 billion “Stargate” AI infrastructure project. Other AI-related stocks are also climbing in pre-market trading, with Nvidia (NVDA) up over +3%.
United Airlines (UAL) gained more than +3% in pre-market trading after the airline posted upbeat Q4 results and issued above-consensus Q1 adjusted EPS guidance.
Interactive Brokers (IBKR) rose over +5% in pre-market trading after reporting better-than-expected Q4 results.
Agilysys (AGYS) tumbled more than -20% in pre-market trading after the company reported weaker-than-expected FQ3 revenue and cut its full-year revenue guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - January 22nd
P&G (PG), J&J (JNJ), Abbott Labs (ABT), GE Vernova LLC (GEV), Amphenol (APH), Kinder Morgan (KMI), Travelers (TRV), Discover (DFS), TE Connectivity (TEL), Halliburton (HAL), Teledyne Technologies (TDY), Steel Dynamics (STLD), Textron (TXT), Ally Financial (ALLY), CACI (CACI), Alcoa (AA), Knight-Swift Trans (KNX), Commerce Bancshares (CBSH), Comerica (CMA), RLI (RLI), Cadence Bancorp (CADE), FNB (FNB), Hexcel (HXL), SL Green (SLG), Plexus (PLXS), Cohen Steers (CNS), United Community Banks (UCB), Cathay (CATY), BankUnited (BKU), Banner (BANR), WesBanco (WSBC), Triumph Bancorp (TFIN), OFG Bancorp (OFG), Live Oak Bancshares Inc (LOB), National Bank Holdings (NBHC), QCR (QCRH), Origin Bancorp (OBK), Amerant Bancorp A (AMTB), Univest (UVSP), Eagle (EGBN), Equity Bancshares (EQBK), Hbt Fin (HBT), Horizon Bancorp (HBNC), Third Coast Bancshares (TCBX), First Internet (INBK), Colony Bankcorp (CBAN), Bankwell (BWFG), First Community (FCCO), Currency Exchange Int (CURN).
