The S&P 500 (SPX) is soaring today as investors react to the latest earnings from technology component assembler Foxconn, which trades as Hon Hai Precision Industry (HNHPF) on the OTC. The company posted strong results in its latest quarter, which includes record revenue. Foxconn credits this increase to the rising demand for AI components.
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To understand what the AI boom means for Foxconn, first traders will note it acts as an assembler for other companies. That includes Nvidia (NVDA), the largest AI company and maker of graphical processing units (GPU). If Foxconn is seeing increased revenue, it’s a sign that Nvidia and other AI companies are seeking its help to meet the demand for their products.
Additionally, new reports claim Donald Trump won’t be as aggressive with tariffs as he claims. Insiders say Trump’s administration will only introduce tariffs on key goods, rather than a country’s entire exports. To tie that back to Foxconn’s earnings, the company is based in China, which is one of the countries Trump has floated hitting with heavy tariffs.
Stocks Lifting the S&P 500 Index Up Today
Looking at TipRanks’ SPX heatmap tool, traders can learn which stocks are sending the index higher today. Unsurprisingly, Nvidia is behind much of today’s gains following Foxconn’s earnings report. However, many other tech stocks are joining the rally, sending the SPX 1.01% higher as of this writing.
How to Invest in the SPX Index
Traders can’t take a direct stake in the S&P 500 as it’s only an index. Instead, they might consider buying shares of stocks listed on it. NVDA is a strong bet with massive success over the last year thanks to the AI market rally. It’s also likely to see further gains in 2025.
Another option is investing in exchange-traded funds (ETFs) that track the S&P 500. This lets investors bet on or against the index. SPDR S&P 500 ETF Trust (SPY) is one of the more popular ETFs tracking the index, but plenty of options are available.
