Global Stocks Rise as Trump Policies and Strong Earnings Fuel Optimism

Global stock markets climbed on Wednesday, driven by a combination of new policies introduced by U.S. President Donald Trump and robust corporate earnings. However, lingering uncertainties around tariffs kept the U.S. dollar near two-week lows.

Netflix's Stellar Performance Boosts Markets

Netflix (NASDAQ:NFLX) saw its shares soar 14% in after-hours trading after reporting a record number of new subscribers in the previous quarter. The surge in user growth enabled the streaming giant to raise prices for most service plans in the U.S. and other regions. This optimism translated into a 0.7% gain in Nasdaq futures during Asian trading hours, while S&P 500 futures rose 0.3%.

European markets followed suit, with pan-European STOXX 50 futures climbing 0.2%, signaling a positive opening.

Major AI Investment Announcement Fuels Optimism

Adding to market enthusiasm, Trump announced late on Tuesday that OpenAI, SoftBank (TYO:9984), and Oracle (NYSE:ORCL) would form a joint venture named "Stargate," with plans to invest up to $500 billion in artificial intelligence infrastructure. The news drove SoftBank shares up by 11% in Tokyo trading, while Oracle's stock gained 7% overnight.

Tariff Concerns Linger Amid Policy Uncertainty

Despite the initial market rally, concerns over potential tariffs tempered investor sentiment. Trump had widely been expected to impose sweeping tariffs through executive orders on his first day back in office. While he refrained from announcing immediate actions, he reiterated his administration's intent to impose fresh levies on the European Union and suggested a 10% tariff on Chinese goods could take effect by February 1.

"I think we're pricing out all the extreme moves," said Hoe Lon Leng, global head of FX flow and EM rates linear trading at Nomura in Singapore.

Investor Takeaways

Investors remain cautiously optimistic, balancing positive earnings and AI-driven growth prospects with the looming possibility of new trade barriers. As market participants digest the latest policy moves, they will closely watch further developments in U.S. trade policy and upcoming earnings reports.

Key Financial Insights with FMP APIs

For investors tracking market movements and company performance, tools like the Earnings Calendar can provide valuable insights into upcoming earnings reports. Additionally, monitoring Market Biggest Gainers can help identify top-performing stocks in the wake of significant policy changes.