S&P 500 Hits Record High Amid AI Optimism and Netflix Surge

The S&P 500 climbed to a record high on Wednesday, fueled by enthusiasm over Netflix’s quarterly results and the technology sector’s strong performance and AI investment. Investor sentiment was further boosted by President Donald Trump’s $500 billion private-sector artificial intelligence (AI) infrastructure initiative, announced earlier in the week. The Nasdaq Composite also posted notable gains, while the Dow Jones Industrial Average saw modest increases.

The technology sector led the rally, with AI chipmaker Nvidia and Microsoft among the standout performers. Companies tied to Trump’s AI initiative, including Oracle and ARM Holdings, also saw stock price increases. The Philadelphia Semiconductor Index outperformed, reflecting optimism about the AI industry’s growth prospects. However, analysts expressed caution due to a lack of clarity on the funding for the $500 billion plan.

Netflix shares soared after the company reported record holiday-quarter subscriber growth, enabling it to increase pricing for its services. Investors interpreted this as a sign of the streaming giant’s sustained profitability, further driving market momentum.

Economic data showing robust performance and easing inflation contributed to risk appetite among investors. Trump’s moderate trade policies since his inauguration on Monday have also reassured markets, though concerns remain over potential tariffs on imports from China, Mexico, Canada, and the European Union. The president has set deadlines for comprehensive trade reviews by April 1, keeping markets attentive.

Among other stocks, Procter & Gamble advanced on strong quarterly results, while Johnson & Johnson shares declined despite beating estimates. Ford lost ground following a downgrade by Barclays, and Textron dropped after issuing a weaker-than-expected profit forecast. Halliburton also saw a decline after warning of reduced North American activity.

Preliminary data showed the S&P 500 gaining 0.60% to close at 6,085.81, the Nasdaq Composite up 1.27% to 20,008.67, and the Dow Jones Industrial Average rising 0.27% to 44,146.78.

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