The World Economic Forum has commenced this week in Davos, Switzerland, drawing global leaders and CEOs to discuss pressing economic issues. However, some notable world leaders have opted to skip this year's meeting. President Donald Trump plans to address participants via videolink on Thursday. In the finance sector, the interim head of the Securities and Exchange Commission has introduced a "crypto task force" to establish a clear regulatory framework for crypto assets. Meanwhile, the stock market experienced significant gains on Tuesday as investors reacted positively to recent developments.
On Tuesday, stocks rallied as investors showed confidence that President Trump's tariff policies might not be as severe as initially anticipated. The Dow Jones Industrial Average surged by 538 points, or 1.2%, while the S&P 500 climbed 0.9%, and the Nasdaq Composite increased by 0.6%. Tech giants like Amazon, Nvidia, and Alphabet saw increases of over 1%, though Apple faced a nearly 4% drop following two downgrades.
In corporate news, Netflix reported a record addition of 19 million subscribers, bringing its total paid memberships to over 300 million. In response to its robust performance, Netflix announced a price increase for subscribers, including a first-time hike for its ad-supported tier. The company's shares soared nearly 15% in extended trading after exceeding earnings expectations.
United Airlines also made headlines by surpassing analysts' forecasts with its fourth-quarter earnings report released on Tuesday. A conference call with analysts is scheduled for Wednesday at 10:30 a.m. ET to discuss their financial results in detail.
The SEC's newly formed "crypto task force" aims to develop a comprehensive regulatory framework for cryptocurrencies. This move has already influenced the market, with Bitcoin rallying approximately 2.4% to over $106,000 following the announcement.