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TOKYO (AP) — U.S. futures were flat after President Donald Trump’s State of the Union speech, while Asian shares were mostly higher.
Japan’s benchmark briefly hit a record high as investors were cheered by an overnight Wall Street rally driven by optimism about the artificial-intelligence boom.
Tokyo’s Nikkei 225 surged 2.2% to 58,583.12.
Shares also rose in China. Hong Kong’s Hang Seng rose 0.5% to 26,735.22, while the Shanghai Composite added 0.6% to 4,142.17.
South Korea’s Kospi surged 2.1% to 6,093.33, as the benchmark continued to benefit from the global demand for computer chips.
In Taiwan, the Taiex jumped 2.1% as shares in TSMC, the world’s largest contract manufacturer of computer chips, surged 2.5%.
Australia’s S&P/ASX 200 jumped 1.2% to 9,128.30.
In his speech, Trump focused on jobs, manufacturing and an economy he says is stronger than many Americans believe. He didn’t dwell on efforts to lower the cost of living — despite polling showing that his handling of the economy and kitchen-table issues has increasingly become a liability.
The futures for the S&P 500 and the Dow Jones Industrial Average were nearly unchanged.
On Tuesday, before the speech, the S&P 500 climbed 0.8% to 6,890.07. The Dow industrials added 0.8% to 49,174.50, and the Nasdaq composite climbed 1% to 22,863.68.
Advanced Micro Devices helped lead the market and rallied 8.8% after announcing a multiyear deal where it will supply chips to Meta Platforms to help power its AI ambitions. Meta also got the right to buy up to 160 million shares of AMD stock for 1 cent each, depending in part on how many chips Meta ultimately buys.
It’s a reminder of the excitement that built in recent years about the billions of dollars pouring into AI, producing a sharp turnaround from the prior day, when worries about the potential downsides of AI shook Wall Street. IBM rose 2.7% to recover some of its 13.1% drop from Monday, which was its worst since 2000.
Chipmaking giant Nvidia is due to report its earnings later Wednesday in a quarterly report likely to sway a jittery stock market as investors weigh whether the massive bets riding on technology’s latest craze will pay off.
As has been the case since Nvidia’s chipsets emerged as AI’s best building blocks, the expectations are sky high for the results covering the company’s fiscal quarter, covering November through January.
Big U.S. companies have reported mostly better profits for the end of 2025 than analysts expected. Keysight Technologies rallied 23.1% for the biggest gain in the S&P 500, while Home Depot rose 2% after likewise delivering stronger profit and revenue than analysts expected.
