In a robust surge, US stocks rallied on Wednesday, with the S&P 500 on track to achieve another all-time high, fueled by upbeat tech sector earnings, particularly led by streaming giant Netflix. The S&P 500 (^GSPC) demonstrated a 0.6% increase, building on the momentum from the previous day’s record-breaking close, while the Dow Jones Industrial Average (^DJI) indicated a resurgence with a rise of approximately 0.4%, or nearly 150 points.
Tech stocks stole the spotlight, with the Nasdaq Composite (^IXIC) experiencing a 0.9% upswing. This surge was attributed to the quarterly earnings report from Netflix (NFLX), which not only exceeded expectations but also painted a positive picture of consumer health. In the early market hours, Netflix’s shares soared by almost 10%, reflecting the market’s favorable response to the streaming giant’s substantial increase in subscribers.
Contributing to the tech sector’s upward trajectory were outstanding updates from chip gear maker ASML (ASML) and software maker SAP (SAP). These reports fostered optimism for a revival in the chip industry and a tech boom fueled by artificial intelligence.
The day’s corporate spotlight was on Tesla (TSLA), part of the “Magnificent Seven,” which lagged behind. The electric vehicle (EV) maker faced scrutiny as its deliveries took center stage amidst a challenging market and formidable rivals in China. Concurrently, tech stalwart IBM (IBM) was also in focus, adding depth to the cavalcade of corporate reports on Wednesday.
While corporate earnings dominated the narrative, the ongoing debate over the Federal Reserve’s potential interest rate cuts continued to influence market sentiment. The looming question of when the Federal Reserve will make a move remained unresolved. In this context, data-driven expectations took center stage, with updates on US manufacturing and services activity scheduled for release on Wednesday. These updates were anticipated to provide additional insights ahead of the release of the Fed-favored Personal Consumption Expenditures (PCE) inflation figures on Thursday.
As Wall Street remained captivated by upbeat tech sector earnings reports, the broader market sentiment remained optimistic. The buoyancy in tech stocks, driven by stellar performances from industry leaders like Netflix, ASML, and SAP, underscored investor confidence in the sustainability of the record-setting rally. With key economic indicators and corporate updates shaping market expectations, investors eagerly awaited the forthcoming data releases and the Federal Reserve’s stance on interest rates.
Source: Yahoo Finance
