US close: Nasdaq breaks above 20,000 on AI optimism

(Sharecast News) - Major indices closed higher on Wednesday as tech stocks continued to receive a leg-up from AI optimism.

At the close, the Dow Jones Industrial Average was up 0.30% at 44,156.73, while the S&P 500 advanced 0.61% to 6,086.37, and the Nasdaq Composite came out the gate 1.28% firmer at 20,009.34.

The Dow closed 130.92 points higher on Wednesday, extending gains recorded in the previous session.

Stocks traded higher despite President Donald Trump telling Americans he was mulling over slapping a 10% tariff on China as soon as 1 February and that he was also weighing up whether or not he would place levies on Canada and Mexico.

The tech-heavy Nasdaq led the charge on Wednesday, breaking above the 20,000 point barrier, after President Trump announced 'Stargate', a joint venture between OpenAI, Oracle and Softbank that will see "at least" $500.0bn invested into AI infrastructure in the US, helping to lift tech stocks.

Elsewhere in the corporate space, Netflix shares were up double digits at the open after the streaming giant posted Q4 earnings and revenue that topped analysts' expectations, while Procter & Gamble was in the green on the back of stronger-than-expected quarterly earnings, and Johnson & Johnson also traded higher after reporting a beat on both the top and bottom lines.

On the macro front, US mortgage applications rose 0.1% in the week ended 17 January, according to the Mortgage Bankers Association of America, with applications to purchase a home edging 0.6% higher week-on-week, offsetting a 2.9% drop in applications to refinance an existing mortgage.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Microsoft Corp. (MSFT) $446.20 4.13%

Travelers Company Inc. (TRV) $246.54 3.16%

Walgreens Boots Alliance, Inc. (WBA) $11.62 2.20%

Procter & Gamble Co. (PG) $164.74 1.87%

Salesforce.Com Inc. (CRM) $332.62 1.77%

3M Co. (MMM) $149.12 1.52%

American Express Co. (AXP) $322.33 1.35%

Nike Inc. (NKE) $74.04 1.19%

Cisco Systems Inc. (CSCO) $61.63 0.98%

Apple Inc. (AAPL) $223.83 0.53%

Dow Jones - Fallers

Home Depot Inc. (HD) $410.10 -1.99%

Johnson & Johnson (JNJ) $145.27 -1.94%

Dow Chemical Co. (DOW) $40.82 -1.83%

Chevron Corp. (CVX) $156.41 -1.16%

Coca-Cola Co. (KO) $61.78 -1.03%

Unitedhealth Group Inc. (UNH) $519.72 -1.00%

Merck & Co. Inc. (MRK) $95.68 -0.58%

Amgen Inc. (AMGN) $273.44 -0.50%

International Business Machines Corporation (CDI) (IBM) $223.26 -0.45%

McDonald's Corp. (MCD) $281.35 -0.45%

S&P 500 - Risers

Netflix Inc. (NFLX) $953.99 9.69%

Amphenol Corp. (APH) $77.85 7.04%

Arista Networks Inc. (ANET) $129.88 6.85%

Seagate Technology Plc (STX) $108.18 6.84%

Oracle Corp. (ORCL) $184.22 6.75%

CenturyLink Inc. (LUMN) $5.75 4.93%

Corning Inc. (GLW) $54.01 4.77%

TE Connectivity Ltd (TEL) $154.61 4.58%

Nvidia Corp. (NVDA) $147.07 4.43%

Discover Financial Services (DFS) $197.50 4.35%

S&P 500 - Fallers

Edison International (EIX) $58.29 -6.33%

Comerica Inc. (CMA) $62.75 -5.56%

Dominion Energy Inc. (D) $52.93 -5.33%

AES Corp. (AES) $11.13 -5.28%

Schlumberger Ltd. (SLB) $41.63 -4.82%

Sempra Energy (SRE) $82.82 -4.29%

Expedia Group Inc. (EXPE) $173.65 -4.27%

Southwest Airlines Co. (LUV) $31.86 -4.24%

Eversource Energy (ES) $55.78 -4.19%

Albemarle Corp. (ALB) $90.37 -4.04%

Nasdaq 100 - Risers

Netflix Inc. (NFLX) $953.99 9.69%

Seagate Technology Plc (STX) $108.18 6.84%

Nvidia Corp. (NVDA) $147.07 4.43%

Microsoft Corp. (MSFT) $446.20 4.13%

Cadence Design Systems Inc. (CDNS) $321.49 3.38%

Synopsys Inc. (SNPS) $544.70 2.82%

Qurate Retail Inc. (QRTEA) $0.37 2.53%

Walgreens Boots Alliance, Inc. (WBA) $11.62 2.20%

Lam Research Corp. (LRCX) $83.25 2.15%

DENTSPLY Sirona Inc. (XRAY) $19.36 2.11%

Nasdaq 100 - Fallers

Expedia Group Inc. (EXPE) $173.65 -4.27%

Trip.com Group Limited (TCOM) $66.87 -3.03%

Dollar Tree Inc (DLTR) $71.97 -2.43%

Mondelez International Inc. (MDLZ) $56.31 -2.24%

Tesla Inc (TSLA) $415.11 -2.11%

Skyworks Solutions Inc. (SWKS) $92.00 -2.09%

Vodafone Group Plc ADS (VOD) $8.38 -1.99%

Incyte Corp. (INCY) $72.41 -1.44%

Booking Holdings Inc. (BKNG) $4,619.21 -1.43%

Kraft Heinz Co. (KHC) $29.07 -1.39%