On Wednesday, the New York Stock Exchange saw positive gains, fueled by better-than-expected corporate earnings and reassurances from President Trump regarding tariffs and AI investments. The Dow Jones rose by 0.35%, the Nasdaq by 1.23%, and the S&P 500 by 0.69%. Notable performances included Netflix’s 12.16% increase after reporting nearly 19 million new subscribers and Procter & Gamble’s 2.24% rise following a 33% profit boost. AI-related stocks also surged due to Trump’s AI infrastructure commitment.
New York Stock Exchange Sees Positive Movement
The New York Stock Exchange experienced a positive surge on Wednesday, propelled by corporate earnings that surpassed expectations and reassured investors following U.S. President Donald Trump’s comments on tariffs and artificial intelligence (AI). By 15:20 GMT, the Dow Jones climbed by 0.35%, the Nasdaq index increased by 1.23%, and the S&P 500 index rose by 0.69%.
Corporate Earnings Boost Market Sentiment
Analyst Patrick O’Hare from Briefing.com remarked that the corporate results “were enough to revive a stock market that had been bogged down due to rising bond yields.” He noted that the recovery is ongoing, with approximately fifteen key companies reporting results, most of which have shown strong performances. Peter Cardillon from Spartan Capital Securities highlighted Netflix’s impressive results, stating that the streaming giant saw a notable rise of 12.16% on Wednesday after announcing nearly 19 million new subscribers in the fourth quarter of 2024. With a staggering 300 million subscribers, Netflix continues to assert its dominance in the streaming sector, achieving $10.2 billion in quarterly revenue, a 16% increase, and generating $1.9 billion in net profit.
Procter & Gamble (P&G), a leading American consumer goods and hygiene company, also experienced a boost, rising by 2.24% after delivering better-than-expected results for the second quarter of its fiscal year. The company, known for brands like Febreze, Gillette, and Pampers, reported a remarkable 33% increase in net profit, reaching $4.65 billion. GE Vernova, which includes the former energy operations of General Electric, also saw a gain of 2.42%, despite reporting a net profit below expectations for the fourth quarter of 2024. The group maintains a robust order book and reiterated its forecasts for 2025.
Furthermore, the market’s positive trend was enhanced by President Trump’s more measured approach to tariffs. He stated on Tuesday evening that his administration is considering “10% tariffs on Chinese products,” likely to be implemented by February 1. This timeline coincides with the previously announced date for the introduction of 25% tariffs on products from Mexico and Canada.
President Trump cited concerns over China exporting fentanyl to Mexico and Canada, which he claims ultimately affects the U.S. This synthetic drug, which is significantly more potent than morphine, has been linked to a severe health crisis in America. However, the proposed tariffs are much lower than the previously discussed 60% rate.
In the bond market, yields on ten-year U.S. Treasury bonds were reported at 4.57%, slightly up from 4.56% the day before. Additionally, stocks associated with AI saw positive reactions to Trump’s announcement of the Stargate project, which includes a commitment of “at least $500 billion” toward AI infrastructure in the U.S. Notably, Oracle’s stock surged by 6.10%, while semiconductor companies like Nvidia (+3.81%), Broadcom (+0.87%), and Qualcomm (+1.85%) also welcomed the news with favorable gains.