New York Stock Market Rises on AI Infrastructure Investment and Big Tech Earnings Expectations... Netflix Up 12%

Trump Announces $500 Billion AI Infrastructure Investment
OpenAI, Oracle, and SoftBank Launch Joint Venture; AI-Related Stocks Climb
Netflix's Surprise Earnings Boost Expectations for Big Tech Results

The three major indices of the U.S. New York Stock Exchange all rose on the 22nd (local time). Following the announcement by U.S. President Donald Trump of a plan to invest up to $500 billion (approximately 718 trillion won) in artificial intelligence (AI) infrastructure, technology stocks, especially AI-related shares, have been climbing. Netflix's "surprise earnings" report has also raised expectations for upcoming big tech earnings.

As of 10:14 a.m. in the New York stock market that day, the Dow Jones Industrial Average (Dow Index), which focuses on blue-chip stocks, was up 0.34% from the previous day at 44,174.42. The S&P 500 Index, centered on large-cap stocks, rose 0.64% to 6,088.11, approaching an all-time high, while the Nasdaq Index, focused on technology stocks, was trading up 1.24% at 22,700.

By individual stocks, AI-related shares were on the rise. Oracle jumped 6.46%. Nvidia and Microsoft (MS) rose 2.96% and 2.7%, respectively. Netflix surged 12.39% on strong earnings. The company announced in its earnings report the previous day that its paid subscribers exceeded 300 million in the fourth quarter of last year. Thanks to hits like "Squid Game Season 2," fourth-quarter revenue and net income reached $10.25 billion and $1.877 billion, respectively, surpassing market expectations.

President Trump announced the "Stargate" initiative at the White House the previous afternoon, involving OpenAI, Oracle, and Japan's SoftBank. These three companies will establish a joint venture called Stargate to invest in AI infrastructure such as data centers within the U.S., initially investing $100 billion and expanding the investment to $500 billion within the next four years. President Trump will support power production and other areas through emergency measures. This is a strategic move to dominate AI supremacy by actively easing regulations amid the heated U.S.-China rivalry in the future advanced technology field of AI.

Leslie Thompson, Chief Investment Officer (CIO) of Spectrum Wealth Management, said, "The announcement of a $500 billion AI infrastructure investment through Stargate is driving the rise in tech stocks," adding, "Netflix's stock is rising significantly today due to a surge in paid subscribers, strong earnings, and price increases."

The market is focusing on President Trump's market-friendly policies such as deregulation and tax cuts despite tariff risks. Optimism has spread on Wall Street, with the S&P 500 Index rising nearly 3% so far this year.

Meanwhile, Jamie Dimon, chairman of JP Morgan and known as the "Emperor of Wall Street," expressed the view that the U.S. stock market is overvalued. In an interview with CNBC at the World Economic Forum held in Davos, Switzerland, he said, "Asset prices are somewhat inflated," adding, "To justify these prices, quite good results are needed. We all hope for that."

Tariff uncertainties remain. Although President Trump gave the market relief by postponing new tariff measures on his first day in office, contrary to expectations, volatility could increase again if he imposes a "tariff bomb" as promised during his candidacy. The previous day, President Trump said he was considering imposing a 10% tariff on China starting next month.

John Creekmer, CIO of Creekmer Wealth Advisors, analyzed, "Investors are applauding the recent market-friendly executive orders by the Trump administration, especially deregulation and energy-related measures," but added, "Fear of tariffs is still lurking beneath the surface."

Government bond yields are steady. The yield on the U.S. 10-year Treasury note, a global bond yield benchmark, is at 4.57%, and the yield on the U.S. 2-year Treasury note, sensitive to monetary policy, is at 4.27%, both moving at levels similar to the previous trading day.

The dollar index, which indicates the value of the U.S. dollar against six major currencies, is also steady at 107.95, the same level as the previous day.

International oil prices are moving sideways as they monitor President Trump's tariff policy and the declaration of a national energy emergency. West Texas Intermediate (WTI) crude oil is trading at $75.65 per barrel, down $0.18 (0.2%) from the previous day, and Brent crude, the global oil price benchmark, is trading at $79.11 per barrel, down $0.18 (0.2%) from the previous day.