Stocks Rise on Potential Trump AI Investment – US Market Wrap
Stocks climbed as President Donald Trump struck a better-than-feared tone on global trade and speculation grew that his policies will further boost Corporate America. Bonds continued to unwind the recent surge in yields that roiled markets. The dollar wavered.
Over 400 shares in the S&P 500 rose, with the gauge up almost 1% as Trump is expected to announce a new investment push for artificial intelligence led by Softbank Group Corp., OpenAI, and Oracle. A closely watched exchange-traded fund tracking companies with AI exposure hit a three-year high. Small caps climbed on bets they will benefit from a protectionist stance. Trump’s flurry of executive orders helped boost space shares, while weighing on electric-vehicle makers. An ETF focused on big Chinese firms gained as the US president so far refrained from announcing tariffs on the Asian nation.
Treasury yields hovered near their lowest levels of the year. Mexico’s peso and Canada’s loonie got hit as Trump outlined levies he expects to place on both countries by February 1.
The S&P 500 rose 0.9%. The Nasdaq 100 added 0.6%. The Dow Jones Industrial Average climbed 1.2%. The Russell 2000 of small caps rallied 1.8%. A gauge of the “Magnificent Seven” megacaps added 0.3%. In late hours, Netflix Inc. soared after reporting its biggest quarterly subscriber gain in history. United Airlines Holdings Inc. issued a bullish outlook. The yield on 10-year Treasuries declined seven basis points to 4.56%.
