(Updates prices to U.S. close)

By Sinéad Carew and Johann M Cherian

Jan 22 (Reuters) - Wall Street's indexes rose on

Wednesday, with the benchmark S&P 500 hitting a record high

during the session, as investors cheered streaming video

provider Netflix's ( NFLX ) quarterly report and technology shares

rallied a day after President Donald Trump announced a

private-sector artificial intelligence infrastructure plan.

The technology sector was the biggest gainer among

the S&P 500's 11 major industry indexes with hefty boosts from

AI chip leader Nvidia ( NVDA ) and Microsoft ( MSFT ).

Investors piled bets into the promise of AI the day

after Trump announced a

$500 billion private-sector AI infrastructure investment

plan from a venture involving Oracle, OpenAI and

SoftBank, even though there was no clarity on funding.

Netflix ( NFLX ) rallied sharply after the company

reported a record number of subscribers for the holiday quarter,

enabling it to increase prices for most service plans.

"This is just the excitement about the technology

investments," said Irene Tunkel, Chief U.S. Equity Strategist at

BCA Research, noting the market's narrow breadth on Wednesday.

"Everything else just cannot compete with it."

Shares in Oracle rallied along with server makers Dell

and U.S. traded shares of ARM Holdings, a chip

technology supplier that is roughly 90% owned by SoftBank.

"It's a story of big tech and everything else is hanging

in there," said Matt Stucky, chief portfolio manager for

equities at Northwestern Mutual Wealth Management, who

attributed much of Wednesday's rally, particularly in chip

stocks, to the AI announcement.

"The direct beneficiary, at least the beginning would be the

semiconductor space," he said pointing to outperformance in the

Philadelphia semiconductor index.

But without funding clarity, Stucky described the news

as "more of a pie in the sky kind of investment story."

According to preliminary data, the S&P 500

gained 36.57 points, or 0.60%, to end at 6,085.81 points,

while the Nasdaq Composite gained 251.89 points, or

1.27%, to 20,008.67. The Dow Jones Industrial Average

rose 120.97 points, or 0.27%, to 44,146.78.

Risk appetites have been boosted recently with data

pointing to a strong economy and cooling inflation and Trump's

more moderate than feared approach to tariffs since his Monday

inauguration.

Sill investors are watching for the president's trade

plans due to inflation concerns after he warned that tariffs on

imports from China, Mexico, Canada and the European Union could

be issued on Feb. 1.

The president has ordered federal agencies to complete

comprehensive reviews of a range of trade issues by April 1 -

the date that analysts at Barclays say markets should focus on.

In individual stocks, Procter & Gamble ( PG ) advanced

after beating second-quarter estimates, driven by growing demand

for its household items in the United States.

Johnson & Johnson ( JNJ ) shares fell although the drugmaker

reported fourth-quarter results above estimates.

After rising on Tuesday, Ford lost ground as Barclays

downgraded the stock. Textron ( TXT ) shares fell after it

forecast 2025 profit below estimates.

Halliburton ( HAL ) slipped after warning of softer North

America activity this year and posting downbeat quarterly

revenue.