Wall Street: solid rise, Netflix soars, Nvidia is No.1
January 21, 2025 at 04:47 pm EST
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A good recovery session on the New York Stock Exchange (closed yesterday due to the three-day Martin Luther King Day weekend): the US indices closed sharply higher (after a cautious start) and the Dow Jones (+1%) returned to the 44,000Pts mark, its best since December 12. The S&P500 gained 0.9% (with 85% of stocks up), while the Nasdaq gained only 0.65%... which gained +0.7% in the 'after hour'. Indeed, Netflix, which published its results this evening, soared +13% (to $985 - a new record, well above the $942 of December 11/2024), its capitalization leaping above the $400 billion mark. In his inaugural speech, Donald Trump declared a "state of energy emergency" and promised, unsurprisingly, to put America and its reindustrialization first, but he remained vague about the introduction of new tariffs (25% applied against Canada and Mexico on February 1?). Tonight, he is expected to announce massive investments in artificial intelligence, prompting a run on semiconductor stocks: ARM soared +4%, Micron climbed +3.5%, Nvidia +2.3%.... which regained its position as the world's #1 capitalization ($3,445 billion) at the expense of Apple, which once again fell against the Wall Street trend (-3.2% and $3,348 billion in 'capi').
"Equity investors are filling up, as promised tax cuts and deregulation policies should boost corporate earnings", says Bruno Lamoral, portfolio manager at DPAM.
Investors have remembered that his first presidency was marked by high volatility in financial assets, but above all by a 68% rise in the S&P 500", points out Christopher Dembik, investment strategy advisor at Pictet AM.
On the macro front, the first US statistic of the day was the Philly-FED manufacturing activity index, down to -9.1 from -3.4 in December. This brought relief to the bond market (no overheating in sight), and 10-year T-Bonds erased -4Pts to 4.57%.
On the oil market, WTI fell -2% below $76 a barrel on the NYMEX: the so-called "state of energy emergency" means more oil production, and therefore potentially lower prices in the long term.
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