The Nasdaq 100 index showed positive performance on January 22, 2025, with several key components contributing to the overall momentum. Here's a detailed analysis:
- Netflix's Strong Performance: Netflix emerged as the top performer on the day, with its shares trading up by 12.9%1. This gain was particularly notable given that it exceeded the year-to-date performance of some other components, such as The Trade Desk, which had a gain of only 3.5%1.
- Trump's AI Investment Plans: The announcement of a $500 billion investment in AI infrastructure by President Trump had a significant impact on the market. This news contributed to a positive opening for U.S. stocks and helped the Nasdaq index to soar, outperforming its peers2.
- Technical Indicators and Market Sentiment: Evercore ISI's Rich Ross highlighted that despite rising bond yields, which can be a bearish signal for tech-heavy indices, the Nasdaq 100 was poised to continue its rally. The index had traded above its 200-day moving average for 467 sessions, a strong technical indicator34. This suggested that the recent rally had further potential to continue.
In conclusion, the Nasdaq 100's performance on January 22, 2025, was characterized by strong gains in key components such as Netflix, and was bolstered by positive market sentiment stemming from Trump's AI investment plans and favorable technical indicators.