S&P 500, Dow Jones, and Nasdaq all close higher on tech strength and AI optimism

From Nasdaq: 2025-01-22 18:44:54

Stocks surged on Wednesday, with the S&P 500, Dow Jones, and Nasdaq all closing higher. Technology stocks led the way, with Netflix up over 9% after strong Q4 earnings. Oracle also rose, forming a $100 billion joint venture for AI infrastructure. President Trump’s trade policies and ECB interest rate cuts influenced market sentiment.

US MBA mortgage applications rose slightly, while the 30-year fixed rate mortgage fell. Leading indicators for December met expectations. Earnings season continues with S&P 500 expected to grow 7.5% y/y in Q4. Markets are pricing in a 1% chance of a rate cut at the upcoming FOMC meeting.

Overseas markets had mixed results, with Euro Stoxx 50 hitting a 24-year high. Interest rates rose slightly, with T-notes giving up gains after the S&P 500 reached a new high. European government bond yields increased, and ECB officials hinted at further rate cuts. Swaps predict a 98% chance of a cut at the next ECB meeting.

Stock movers included Netflix, Oracle, ARM Holdings, Nvidia, Microsoft, Seagate Technology, Teledyne Technologies, TE Connectivity, Procter & Gamble, Travelers Cos, Agilysys, Edison International, Fluence Energy, Textron, Johnson & Johnson, Ford Motor, Fifth Third Bancorp, and Reddit. Earnings reports for 1/23 include CSX Corp, Freeport-McMoRan, General Electric, Texas Instruments, and more.



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