U.S. stocks rose on Wednesday as traders saw strong earnings reports.
Shares of Netflix, United Airlines and Procter & Gamble climbed after beating profit estimates.
Oracle shares rose after Trump announced a $500 billion deal Tuesday involving the software giant.
U.S. stocks climbed on Wednesday as traders saw strong earnings reports, pushing the S&P 500 to near a record high.
Major stock indexes were higher and Treasury yields were slightly lower, with the 10-year Treasury yield hovering around 4.578%.
Companies continue to report strong results for the previous quarter, adding more momentum to the market rally in Trump's first week in office.
The most important event for traders was Netflix, which saw its shares rise 15% after the streaming giant beat earnings, leading gains in the technology sector. The company hit a record number of new subscribers this quarter, with the total number exceeding 300 million.
United Airlines also rose about 3% after issuing a better-than-expected 2025 outlook, while Procter & Gamble rose 3% after beating estimates.
Here's where the U.S. indexes were headed shortly after the market opened at 9:30 a.m. Wednesday:
Earnings season is already off to a strong start. Of the companies that have reported fourth-quarter results so far, 79% have beaten expectations, above the 10-year average of 75%, according to FactSet.
Traders also continue to express optimism about growth and trading during Trump's second term. Oracle shares rose 10% in early trading on Wednesday after Trump announced a $500 billion deal with software giants OpenAI and SoftBank on Tuesday to build artificial intelligence infrastructure.
Bond yields have edged lower in recent days as markets adjust to Trump's lower-than-expected tariff plan on his first day in office. Inflation concerns, as well as fears of a Federal Reserve interest rate hike, subsided slightly as Trump declined to impose new tariffs via executive order and said he was considering February 1 as a date for imposing tariffs on Canada, Mexico and China.
John Creekmur, chief investment officer of Creekmur Wealth Advisors, said in a report: "The 'January effect' in the stock market is currently taking shape, with the stock market performing strongly throughout the month, and the S&P 500 index currently holding firmly above the key 6,000-point mark." notes.
"Investors are now more focused on earnings and the hope of tax cuts and loosening regulations from the new Trump administration than concerns about fewer rate cuts from the Federal Reserve this year."
Here's what else happened today:
In commodities, bonds and cryptocurrencies:
West Texas Intermediate crude oil fell 0.33% to $75.58 a barrel. International benchmark Brent crude oil also fell 0.33% to $79.03 a barrel.
Gold edged up 0.39% to $2,754 an ounce.
The 10-year Treasury yield was stable at 4.578%.
Bitcoin fell 0.45% to $104,275.
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