Nasdaq 100: Tech Stocks Poised for Gains at Opening Bell on Netflix, AI Optimism

Nasdaq Futures Climb as Netflix Shines and AI Investments Fuel Optimism

U.S. stock futures rose on Wednesday, with the Nasdaq leading gains after Netflix’s robust earnings report and optimism over President Donald Trump’s commitment to advancing artificial intelligence infrastructure.

At 13:39 GMT, Nasdaq 100 E-minis gained 1.01%, while S&P 500 and Dow E-minis advanced 0.55% and 0.34%, respectively. The rally follows upbeat earnings reports and AI investment announcements, bolstering investor sentiment.

What Propelled the Tech Sector’s Gains?

Netflix surged 14.9% in premarket trading after reporting record subscriber growth in Q4, crossing 300 million paid users. The company’s revenue of $10.25 billion and earnings per share of $4.27 exceeded expectations, signaling strong pricing power. Other streaming stocks also benefited, with Roku up 4.2% and Walt Disney rising 1.3%.

AI-related stocks received a boost from Trump’s announcement of a $500 billion initiative involving Oracle, OpenAI, and SoftBank to expand AI infrastructure. Oracle jumped 8.7%, while Dell and Super Micro rose 4.5% and 2.6%, respectively. Nvidia and Microsoft advanced 2.7% and 1%, reinforcing the positive sentiment.

How Are Broader Markets Responding?

Economic data continues to show resilience, with signs of cooling inflation supporting risk assets. The benchmark S&P 500 is less than 1% away from its all-time high, aided by easing Treasury yields. Traders now anticipate the Federal Reserve to hold rates steady next week, with a potential rate cut later this year.

However, geopolitical risks linger. Trump’s warning of potential tariffs on imports from China, Mexico, Canada, and the EU by February 1 casts a shadow, with traders weighing inflation risks against strong earnings momentum.

Which Stocks and Sectors Are Driving Momentum?

United Airlines climbed 3.8% after issuing a stronger-than-expected profit forecast for Q1 2025, citing robust travel demand. Johnson & Johnson edged up 0.2% on better-than-expected cancer treatment sales, while Halliburton gained 1.2% following solid oilfield service demand.

On the downside, GE Vernova fell 2.1% after missing revenue expectations, while Textron dropped nearly 4% due to weaker-than-expected Q4 sales. Abbott Labs declined 2% after disappointing diagnostics division revenue.

What Should Traders Watch Next?

While bullish momentum dominates, traders should monitor upcoming Federal Reserve signals and potential tariff announcements. With Netflix setting a high bar for tech earnings, the sector’s broader performance in the weeks ahead will be a critical indicator of market resilience.

If tariff risks are contained, the Nasdaq could lead further gains, supported by growth in AI and technology infrastructure investments. Conversely, heightened trade tensions may curb the current rally.

More Information in our Economic Calendar.