S&P 500 futures rose early Wednesday, following strong gains in the first trading session post-Inauguration Day. As of the latest update, S&P 500 futures were up by 0.31%, Nasdaq 100 futures gained 0.69%, while Dow Jones Industrial Average futures hovered near the flatline.
Trump’s Trade Comments and AI Investment Announcement
President Trump’s Tuesday evening press conference stirred investor attention as he mentioned considering a 10% tariff on China starting as soon as February 1. While the potential tariff weighed on sentiment, it also gave rise to speculation about broader trade policies. Trump also unveiled a joint venture dubbed “Stargate” involving OpenAI, Oracle, and Softbank, which plans to invest at least $500 billion in AI infrastructure in the United States. Following this announcement, Oracle’s shares surged more than 4% in after-hours trading.
Corporate Earnings and Stock Movements
In corporate news, Netflix saw a significant boost, with its stock soaring more than 14% in after-hours trading. This was driven by the company surpassing 300 million paid memberships. United Airlines also gained more than 3% after posting better-than-expected fourth-quarter results and providing an optimistic outlook for the coming months.
Wall Street is coming off a strong session, with the Dow Jones rising more than 500 points (1.2%) on Tuesday, the S&P 500 climbing 0.9%, and the Nasdaq Composite increasing by 0.6%. However, Apple emerged as a notable underperformer, falling more than 3% following two analyst downgrades.
Trump’s Inaugural Day Trade Policy and Market Reaction
Trump’s comments regarding trade policies on his first day in office helped ease concerns that his approach would be more severe than anticipated. He announced a potential 25% tariff on imports from Mexico and Canada, but refrained from authorizing new tariffs on China, which helped the market rally. Liz Young Thomas, SoFi’s head of investment strategy, noted that while there was relief from the lack of stronger tariffs, there is still caution as future tariff announcements could spark retaliatory actions from other countries, creating further market volatility.
Conclusion
The earnings season continues Wednesday, with major companies like Procter & Gamble, Johnson & Johnson, Halliburton, and GE Vernova scheduled to report their quarterly results, which will likely add further volatility to the market as investors digest these earnings updates.
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