US futures

Dow future 0.30% at 44180

S&P futures 0.49% at 6083

Nasdaq futures 0.05% at 21785

In Europe

FTSE 0.06% at 8557

Dax  1.3% at 21303

• President Trump announces $500 billion investment in AI infrastructure
• China tariffs could be much lower than initially feared
• Netflix smashed subscriber growth forecasts +19M
• Oil steadies after recent Trump-inspired losses

Tech stocks surge on Trump’s $500 bln AI plan

U.S. stocks are set for a positive opening as investors assess comments from President Trump on his plans for possible trade tariffs and AI infrastructure and digested more corporate earnings.

The Nasdaq is soaring, outperforming its peers after Trump announced a $500 billion investment in AI infrastructure. The project will see OpenAI team up with Oracle and Softbank in the Stargate project. The market is more focused on the boosted growth and productivity outcome than debt worries.

Sentiment is buoyed by Trump's refraining from applying harsh import tariffs immediately and universally; the fact that he said he is still considering levies on Mexico, Canada, Europe, and China could keep a cap on gains.

Trump highlighted Europe and China as being in the firing line for possible trade tariffs. The EU, Trump noted, had a troubling trade surplus with the US that needs to be evened out. Meanwhile, China is facing a 10% tariff on all goods sent to the US, possibly as soon as February 1st. However, this was significantly lower than the pledged 60% tariff on China that he threatened across the campaign.

Today, the US economic calendar is quiet. The market will continue to monitor any developments around Trump's plans for a more protectionist stance, which could fuel inflationary pressures and cause the Fed to cut rates at a slower pace in 2025

The Fed is due to meet next weekend and is expected to leave interest rates unchanged.

Corporate news

Netflix has soared 14% after the streaming giant posted better-than-expected Q4 results boosted by a spike in subscriber editions. The streaming giant added 19 million subscribers, taking the total number of paid members past the 300 million mark. EPS was $4.27 on revenue of $10.25 billion, ahead of forecasts of $4.20 on $10.11 billion. Netflix growth was driven by its strong content, improved product, and Q4 seasonality.

Oracle is set to open over 8% higher, adding to strong gains in the previous session, after President Donald Trump announced the computer software group would be part of a $500 billion private sector investment in AI infrastructure.

Proctor & Gamble is set to open over 3% higher after the consumer goods giants posted net sales in fiscal Q2 that beat forecasts thanks largely to strong demand in its U.S. market

Nasdaq 100 forecast – technical analysis.

The Nasdaq 100 broke out of a falling wedge pattern, breaking above the 21,600 resistance as it heads towards 22k and fresh ATHs. The rebound from the falling trendline support, reinforces the bullish bias. On the downside, immediate support is at 21,600. Below here, the 50 SMA at 21,200 comes into focus ahead of 20,800.

FX markets – USD falls, EUR/USD rises

The USD is modestly lower, ticking below 108 versus its major peers, as it extends its declines from yesterday. The mood remains cautious as investors assess possible U.S. trade policies. The upbeat open on equities could keep the USD under pressure.

 EUR/USD is heading higher after modest losses yesterday as choppy trade continues. The euro is shrugging off threats from Trump over tariffs for the European Union and instead boosted by risk sentiment after lower-than-anticipated tariffs on China. ECB president Lagarde warned that the euro block would be prepared for US tariffs. However, gains may be limited in the pair given recent dovish ECB commentary.

GBP/USD is holding steady after two days of gains as the market digests higher than expected public sector net borrowing. PSNB rose to $17.8 billion in December, up from $11.8 billion in November and ahead of expectations of $13.4 billion. However, it's also worth noting that the cost of government borrowing fell on Tuesday to its lowest level since the start of this month's bond sell-off as the market breathes a sigh of relief over Trump's first moves as president.

Oil steadies after sharp Trump-inspired declines

Oil prices are steadying after three days of losses as investors continued to watch U.S. President Donald Trump's proposed tariffs and the potential impact of his national energy emergency declared on his first day in office.

Oil fell 2% yesterday after Trump said he is considering a 10% tariff on goods from China. Earlier that day, he also said that Mexico and Canada could face tariffs of around 25%.

While Trump's comments remain a key catalyst for the oil market, attention will also be on API oil inventories, which are due later today.

Meanwhile, a weaker U.S. dollar is also offering support as the US dollar index hovers near a two-week low. A softer dollar makes oil cheaper for buyers with foreign currencies.