U.S. Stock Index Futures Rise

(Reuters) – U.S. stock index futures rose on Wednesday, led by the tech-heavy Nasdaq as investors reacted positively to Netflix’s strong quarterly performance and President Donald Trump’s multi-billion support for the AI tech industry.

At 5:31 a.m. ET:
– Dow E-minis: Up 57 points (0.13%)
– S&P 500 E-minis: Up 26 points (0.43%)
– Nasdaq 100 E-minis: Up 177.75 points (0.82%)

Netflix Surges

Netflix jumped 14.3% in premarket trading after reporting a record number of subscribers over the holiday quarter, allowing it to raise prices on most service plans. Other streaming firms like Roku and Disney also saw gains, with increases of 1.3% and 4.2%, respectively.

> “Stellar subscriber figures such as these would be hard to beat. Netflix is seen as a litmus test for the entire tech sector … the tech sector could be well placed to report strong earnings figures in the coming months,” said Kathleen Brooks, research director at XTB.

Other Major Moves

Oracle gained 7.8% after Trump announced a $500 billion investment in AI infrastructure in a joint venture with OpenAI and SoftBank, although funding details were unclear. Other server makers like Dell and Super Micro added 3.5% and 3%, respectively. AI leaders Microsoft and Nvidia rose by 1.5% and 2.8%, respectively.

> “The news also boosted growth and productivity expectations more than they fueled the ballooning debt worries,” stated Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Market Context

Recent data indicating a strong economy has cooled inflation and supported risk-taking on Wall Street, with the S&P 500 nearing all-time highs. Easing Treasury yields have encouraged stock investment.

However, Trump has warned of potential tariffs on imports from several countries starting Feb. 1, which introduces risks of a trade war and inflation pressures.

Traders anticipate the Federal Reserve will keep interest rates unchanged in its upcoming meeting and expect a rate cut by July, as per data compiled by LSEG.

Other Advancements

Among other stocks, United Airlines surged 3.6% after predicting a stronger-than-expected profit for the current quarter, projecting robust travel demand and improved pricing power. Companies like Johnson & Johnson, Procter & Gamble, and Halliburton are expected to report quarterly earnings before the market opens.