By Market Overview
The Dow Jones Industrial Average and the S&P 500 closed at fresh record highs on Friday, with the Nasdaq also gaining ground. Markets were lifted by Netflix’s strong earnings and overall growth in tech stocks. This marks the sixth consecutive week of gains for all three major indexes, with the S&P 500 rising 0.9%, the Nasdaq advancing 0.8%, and the Dow climbing 1%.
Netflix’s Strong Performance
Netflix shares soared by 11.1% after the company exceeded Wall Street expectations for new subscribers and projected continued growth through the year. This boost helped the communication services sector rise by 0.9%, making it the top-performing sector among the S&P 500.
Tech Stocks Rally
Tech giants like Apple and Nvidia also contributed to the upward trend. Apple shares increased by 1.2%, thanks to strong iPhone sales in China, while Nvidia saw a 0.8% jump after BofA Global Research raised its price target for the stock.
Dow’s Record High
The Dow posted its fifth record-high close in six sessions, though its gains were held back by American Express, which dropped 3.1% after missing revenue expectations.
Energy Sector Decline
Energy stocks lagged behind, with the sector dropping 0.4% due to a decline in oil prices and weak earnings from SLB, dragging other oilfield service companies like Baker Hughes and Halliburton down.
Outlook on Corporate Earnings
Despite concerns about high stock valuations and potential volatility from the upcoming U.S. presidential election, strong corporate earnings have kept the market rally intact. Investors continue to focus on earnings performance, with analysts suggesting that future market movements will largely depend on companies meeting these high expectations.
