With a multi-billion-dollar artificial intelligence package from the new US administration on the table, the Nasdaq continued its bull run, lifting major tech stocks in step.
Netflix’s fourth quarter earnings also made waves, impressing investors who drove the stock up 9.7% and almost single handedly lifted the S&P500 communication services sector by 1.1%.
The rising tide won’t be lifting all boats however, ASX Futures are in the red this morning, indicating a 0.4% drop to the Aussie bourse when trading opens today.
US and European markets
Software (ETR:SOWGn) company Oracle (NYSE:ORCL) jumped 6.7% on news it would be included in the new 'Stargate' AI funding initiative, lifting alongside Dell (+3.6%) and Micro Computer (+4.4%).
The positive AI news also bumped up Microsoft (NASDAQ:MSFT) (+4.1%) and Nvidia (+4.4%), to no one’s surprise.
As for non-tech stocks, Procter and Gamble gained 1.9% after exceeding second quarter estimates and Johnson & Johnson shed the same amount after a disappointing 2025 forecast.
The Dow lifted by 0.3% or 131 points while the S&P 500 gained 0.6% and the Nasdaq 1.3% or 252 points.
In Europe, markets were mixed overnight. The main share index lifted by 0.4% to hit a new record high during the trading session.
Trump’s tariff threats weren’t enough to shake the markets across the pond, with tech stock once again forming the backbone of growth, rising 1.3%. Adidas (ETR:ADSGN) lifted 6% on solid fourth quarter results.
The FTSE300 gained 0.5% while the UK FTSE100 finished the day slightly lower despite touching a new high during the session.
Currencies and commodities
Currencies were mixed against the US dollar. The Euro rose from US$1.0399 to near US$1.0410, the Aussie lifted from US62.52 cents to near US62.75 cents and the Japanese Yen fell from JPY155.54 to near JPY156.55.
Global oil prices dropped to a one-week low as markets weighed potential effects of US President Donald Trump's proposed tariffs on global economic growth and energy demand.
Brent crude declined by US29 cents (0.4%) to US$79.00 a barrel, while US Nymex crude fell by US39 cents (0.5%) to US$75.44 a barrel.
Base metal prices weakened amid concerns over possible US tariffs on Chinese imports, which heightened trade tension fears. Copper and aluminium futures both dropped 0.9%.
Meanwhile, gold futures rose US$11.70 (0.4%) to US$2,770.90 an ounce, supported by a weaker US dollar and uncertainty around US policy. Spot gold was near US$2,756 at the US close.
Iron ore futures increased by US19 cents (0.2%) to US$101.40 a tonne but gains were limited by ongoing tariff concerns.
On the small cap front
The ASX Small Ordinaries lifted 0.49% or 15.6 points yesterday, outperforming the ASX200’s 0.33% gain.
You can read about the following and more on our website throughout the day.
- Brightstar Resources Ltd has hit bonanza gold grades at the Whistler and Montague-Boulder deposits, with results of up to 4 metres at 59 g/t gold from 24 metres of depth and 1 metre at 66.7 g/t gold from 130 metres.
- Nova Minerals Ltd has unearthed very high-grade gold in rock chip samples at the Wombat prospect of the Estelle Gold and Critical Minerals project in Alaska, US, with seven samples above 2 g/t gold and peaking at 360 g/t gold.
- International Graphite Ltd has inked a $2 million financial assistance agreement with the Western Australian Government under the Collie Industrial Transition Fund, to be applied over two years to various feasibility activities, including metallurgical test work, flowsheet development and plant design.
- American Rare Earths Ltd is gearing up to develop the Halleck Creek Rare Earth Project in Wyoming, US, as one of the largest rare earth deposits in the US with a focus on advancing the Cowboy State Mine and expanding exploration across the larger project.