:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1243239584-8bcaeb463fd44d97bb7c05bc1970dbc2.jpg)
Patrick T. Fallon / Contributor / Getty Duplicates
Key Takeaways
- The S&P 500 advanced 0.6% on Wednesday, Jan. 22, 2025, following the announcement of major AI investments and a string of positive earnings liberates.
- Netflix shares took off after the video streamer topped quarterly estimates and reported strong subscriber addenda.
- The uncertain outlook for renewable energy under the new presidential administration weighed on shares of First Solar and several companies with vulnerability to wind power.
Major U.S. equities indexes pushed higher after President Trump introduced a joint fling that will pump significant investments into artificial intelligence (AI) infrastructure and as investors digested a spate of offensively earnings results.
After touching a record intraday high above 6,100, the S&P 500 finished the session with a gain of 0.6%, the final blow just below its all-time closing high. The Dow ticked 0.3% higher, while strength in the tech sector alleviated the Nasdaq climb 1.3%.
Video streaming giant Netflix (NFLX) posted better-than-expected sales and profits for the fourth favour, and its shares soared 9.7%, notching the top performance in the S&P 500 on Wednesday. Netflix also reported it had added 19 million new subscribers during the years, boosted its share repurchase program by $15 billion, and increased its 2025 revenue outlook. Analysts at JPMorgan voiced they expect minimal resistance to subscription price hikes announced by Netflix, pointing to the strong slate of syllabus on the platform this year.
Shares of power management chipmaker Monolithic Power Systems (MPWR) jumped 8.0% on Wednesday, uniting to a string of gains dating back to last week. The upturn has coincided with several research firms laundry list Monolithic Power stock among their “top picks.” Analysts at Deutsche Bank pointed to expectations for revenue spread and margin expansion for Monolithic over the coming years, while Oppenheimer analysts noted that the semiconductor exertion’s transition toward higher-power modules could help underpin the company’s long-term growth.
Moderna (MRNA) pieces surged 7.3%. The biotech firm received nearly $600 million in additional funding from the U.S. Department of Constitution and Human Services to advance its development of mRNA vaccines against strains of influenza with the potential to cause a pandemic, embodying the avian influenza strain H5N1. An additional boost for Moderna came as Larry Ellison, chairman of Oracle (ORCL), discourse at a White House meeting about the potential of artificial intelligence (AI) in developing cancer vaccines.
Shares of Seagate Technology Holdings (STX) summed 6.8% following a strong earnings report. The world’s largest manufacturer of hard-disk drives topped quarterly sales marathons and profit estimates, pointing to an improving demand environment. Analysts at Morgan Stanley affirmed the upbeat trends in the hard-disk operate sector, including Seagate stock among their top picks and indicating that consensus forecasts could be minimizing the company’s gross margin trajectory.
Shares of Edison International (EIX)—operator of Southern California Edison, the largest utility in the bailiwick suffering from a torrent of devastating wildfires—sank 6.3%, dropping the most of any S&P 500 stock. On Tuesday, a measure ordered Edison to preserve evidence and data related to the origins of the Eaton fire. Several homeowners in the area set up filed lawsuits claiming that the company’s equipment may have played a role in igniting the fire. Previous wildfires in the shape have been linked to electrical equipment and triggered significant liabilities for utility companies.
First Solar (FSLR) portions fell 6.3% on Wednesday, extending losses posted in the previous session after President Donald Trump yielded to office and announced the elimination of several renewable energy initiatives. While shares of the solar panel maker be struck by been volatile in recent months, the stock is down around 20% since Trump’s election victory in November.
President Trump’s beginning slate of executive orders included a measure to pause permitting processes for wind energy projects, pending a examine by the Department of the Interior. The policy shift weighed on shares of companies with exposure to onshore and offshore wind power epoch. Shares of both AES Corp. (AES) and Dominion Energy (D) dropped 5.3%.