Wall Street Surges as S&P 500 Reaches New Record High

US markets advance with S&P 500 breaking previous highs; London’s FTSE 100 struggles amidst mixed European performance.

The United States stock market continued its upward trajectory, with the S&P 500 index climbing 0.8% to surpass its previous intra-day record high set last month.

This surge in US markets coincides with the inauguration of Donald Trump for a second term as president, offering a favorable outlook for technology and artificial intelligence companies, which are expected to benefit under his administration.

Netflix witnessed a substantial increase in its share price, rising more than 10%, following reports of record-high earnings in 2024 and a milestone of 300 million subscribers globally.

Concurrently, the Dow Jones industrial average saw a modest rise of 0.3% as European markets closed.

According to Kathleen Brooks, research director at XTB, the market's rally is significantly influenced by Trump's presidency, which continues to drive risk sentiment across global markets.

Domestic stocks, particularly those involved in emerging technologies, such as Oracle, have noted significant gains.

Oracle's recent collaboration with the US government to develop AI computing infrastructure has contributed to its share price surge.

In contrast, the London FTSE 100 index lagged, closing 3.16 points lower, which accounts for a 0.04% drop to 8,545.13. European counterparts experienced better outcomes, with France's Cac 40 rising by 0.86% and Germany's Dax increasing by 0.99%.

In the foreign exchange markets, the British pound weakened against major currencies.

It fell 0.3% against the US dollar and decreased 0.2% against the euro.

This decline follows reports indicating that UK public sector borrowing reached £17.8 billion in December, marking the highest level in four years.

On the corporate front, shares in easyJet decreased by over 5% after the budget airline reported a pre-tax loss of £61 million for the final quarter of 2024. Despite the loss, the airline has halved its deficit compared to the same period in 2023, with a 7% increase in passenger numbers.

Shares closed 5.2% lower.

Wetherspoon, a pub group, reported a boost in sales thanks to increased food and bar sales, mitigating a downturn in its hotel sector.

However, the group anticipates a £60 million rise in labor-related costs in April.

Tim Martin, the company's CEO, described the position as 'reasonable,' but expressed concerns over forecasting challenges amid escalating expenses.

Wetherspoon's shares closed down 0.4%.

The day's biggest gainers on the FTSE 100 included Intermediate Capital, increasing by 140p to 2,258p, Halma, rising 116p to 2,951p, Entain, up 27.2p to 706.8p, Aviva, gaining 17.2p to 511.2p, and Games Workshop, climbing 370p to 14,350p.

Conversely, the biggest losers included easyJet, down 26.4p to 484.8p, United Utilities, dropping 26.6p to 973p, Centrica, decreasing by 3.55p to 134.9p, Severn Trent, falling 53p to 2,472p, and Vodafone, declining 1.44p to 68.2p.