Tech Stocks Surge as AI Optimism and Earnings Boost Market Confidence

NEW YORK (AP) — Stocks climbed on Wednesday, Jan. 15, 2025, with the S&P 500 nearing an all-time high as technology shares rallied on artificial intelligence optimism and strong quarterly earnings reports. The Dow Jones Industrial Average rose 67 points, or 0.2%, while the Nasdaq Composite surged 1.1%, driven by gains in tech giants like Netflix, Oracle, and Nvidia.

Netflix shares soared 12% after the streaming giant reported fourth-quarter earnings and revenue that exceeded analyst expectations. The company credited its success to hit series like “Squid Game” and live sporting events, including the Jake Paul and Mike Tyson boxing match. Netflix also announced a price increase for its subscription plans, further boosting investor confidence.

Oracle shares jumped 5%, and Nvidia climbed about 3% following President Donald Trump‘s announcement of the “Stargate” project, a $500 billion initiative to invest in AI infrastructure in the United States. The project, a joint venture involving OpenAI, Oracle, and SoftBank, aims to position the U.S. as a global leader in artificial intelligence. “Animal spirits seem to be in play as the first 100 days of the new administration commence,” said Leslie Thompson, chief investment officer at Spectrum Wealth Management.

Despite concerns over potential tariffs on China, which Trump said could take effect as early as Feb. 1, markets remained buoyant. “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. However, he cautioned that “there is also the fear of tariffs lurking in the background.”

Other notable movers included Procter & Gamble, which gained more than 3% after reporting better-than-expected earnings, and Johnson & Johnson, which added 2% following a strong fourth-quarter performance. United Airlines also saw its shares rise more than 3% after posting earnings that beat Wall Street expectations.

As the trading session progressed, the S&P 500 advanced 0.5%, coming within half a percentage point of its intraday record. The index has already gained 3% in 2025, rebounding from a 2.5% decline in December. The Nasdaq’s outperformance underscored the continued dominance of tech stocks in the current market cycle.

President Trump’s announcement of the Stargate project has injected fresh optimism into the tech sector, with Oracle shares rising 7% on Tuesday alone. “Netflix’s strong earnings, coupled with the largest increase in paid memberships and announced price increases, are propelling the stock price significantly higher today,” Thompson added. “At the same time, the announcement of a $500 billion AI infrastructure investment through Stargate is boosting tech stocks higher.”

As markets continue to digest the implications of the new administration’s policies, investors remain cautiously optimistic. The combination of strong corporate earnings, AI-driven growth, and a business-friendly regulatory environment has created a bullish sentiment on Wall Street, even as geopolitical risks loom.