Tech Titans Propel Markets Amid AI Investment Announcement

Tech Titans Propel Markets Amid AI Investment Announcement

United Airlines saw a significant boost, gaining over 3% after revealing an optimistic forecast and better-than-expected fourth-quarter results. Meanwhile, Oracle shares surged nearly 4% in extended trading. Apple, however, experienced a downturn, dropping more than 3% due to two downgrades. In a major announcement, President Donald Trump unveiled a joint venture named "Stargate" with OpenAI, Oracle, and SoftBank. This initiative aims to invest at least $500 billion in artificial intelligence infrastructure in the United States.

"These world-leading technology giants are announcing the formation of Stargate. So, put that name down in your books, because I think you're going to hear a lot about it in the future," – President Donald Trump

The announcement of "Stargate" came on the heels of President Trump's first-day remarks on trade policy, which calmed traders concerned about potential severe trade policies. Trump hinted at a tax on imports from China but refrained from introducing new tariffs. However, he is contemplating a 25% tariff on imports from Mexico and Canada. The event saw the presence of notable figures including OpenAI CEO Sam Altman, Oracle executive chairman Larry Ellison, and SoftBank CEO Masayoshi Son.

In the stock market, Netflix shares skyrocketed over 13% in extended trading after the company surpassed 300 million paid memberships. The S&P 500 rose by 0.9%, and the Nasdaq Composite increased by 0.6% on Tuesday. Futures also showed positive movements with S&P 500 futures rising by 0.15% and Nasdaq 100 futures gaining 0.39%. The Dow Jones Industrial Average futures added 17 points or 0.04%, following a rally of more than 500 points or 1.2% in the 30-stock Dow.

"Today, it's been a relief, right, that we didn't get something stronger than we were expecting," – Liz Young Thomas, SoFi head of investment strategy

Earnings season is ongoing with reports from Procter & Gamble and Johnson & Johnson expected to be released on Wednesday. These forthcoming earnings reports are anticipated to provide further insight into market trends as investors continue to assess economic conditions.

"A new American company that will invest $500 billion, at least, in AI infrastructure in the United States." – President Donald Trump

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