Stocks Surge on Trump's AI Plan; S&P 500 Hits Record High, Dow Jumps 538 Points

Jan 22, 2025, 04:55 PM

U.S. stocks surged as President Donald Trump began his second term, with major indices reaching new record highs amid investor optimism over his economic agenda. The S&P 500 rose 0.6% to close at a new all-time high of 6,086.45 on January 22, 2025, after hitting an intraday record high of 6,100.81. The Dow Jones Industrial Average climbed 538 points, or over 1.2%, to close above the 44,000 level, while the Nasdaq Composite Index advanced 1.3%, buoyed by gains in blue-chip companies and strong earnings reports. Investor sentiment was bolstered by Trump's announcement of a significant artificial intelligence investment plan, dubbed the 'Stargate AI Project', as well as expectations of economic boosts in the banking and energy sectors. The absence of immediate new tariffs provided additional relief to traders concerned about potential trade disruptions. Despite initial volatility caused by uncertainty over tariff policies, markets rallied strongly in the first few days of Trump's second term, indicating confidence in the new administration's economic direction.