Global stock markets experienced a surge on Wednesday. This rise was fueled by a combination of new policies introduced by President Donald Trump and robust corporate earnings reports. However, concerns about upcoming tariffs kept the US dollar trading near two-week lows.

Netflix’s Impressive Earnings Propel Markets

Netflix shares rocketed 14% in after-hours trading after the company reported record numbers of new subscribers in the previous quarter. This influx in user growth allowed Netflix the leverage to raise prices for most service tiers in the US and beyond. This positive news translated into a 0.7% increase in Nasdaq futures during Asian trading sessions, while S&P 500 futures climbed 0.3%.

European markets followed this trend, with pan-European STOXX 50 futures edging up 0.2%, indicating a strong start to the trading day.

Major AI Investment Announcement Spreads Optimism

Market enthusiasm was further amplified by Trump’s recent announcement concerning the formation of a new joint venture named “Stargate.” This collaboration between OpenAI, SoftBank, and Oracle is set to invest up to $500 billion in artificial intelligence infrastructure. Following this news, SoftBank shares spiked by 11% during trading in Tokyo, while Oracle stocks gained 7% overnight.

Lingering Tariff Concerns Affect Sentiment

Despite the initial surge in the market, worries about upcoming tariffs tempered investor enthusiasm. On his first day back in office, Trump was anticipated to impose sweeping tariffs through executive directives. While he did not announce immediate actions, he reiterated his administration’s commitment to new levies targeting the European Union and mentioned that a 10% tariff on Chinese imports could be in effect starting February 1.

“The market’s reaction seems to be discounting the most extreme outcomes,” stated Hoe Lon Leng, global head of FX flow and EM rates at Nomura in Singapore.

Key Takeaways for Investors

Investors continue to balance optimism from strong earnings and AI-driven growth potential with the uncertainty of potential new trade barriers. As market participants evaluate the latest policy developments, they will closely monitor announcements related to US trade policy and forthcoming earnings reports.

Insights Using Entrepreneur APIs

For investors observing market dynamics and company performances, tools like the Earnings Calendar can be vital for tracking important earnings announcements. Additionally, watching Market Biggest Gainers can aid in identifying stocks excelling after significant policy shifts.