Markets See Sixth Consecutive Week of Gains
On Friday, the Dow Jones Industrial Average and S&P 500 closed at new record highs, while the Nasdaq also saw positive gains. This marked the sixth straight week of increases for all three major U.S. stock indexes. The S&P 500 rose by 0.9%, the Nasdaq gained 0.8%, and the Dow climbed by 1%.
Netflix Earnings Fuel Market Rally
Netflix’s strong earnings report contributed significantly to the market’s performance. The company’s stock surged by 11.1% after exceeding Wall Street estimates for new subscribers and forecasting continued growth. This rally led the communication services sector to rise 0.9%, making it the top-performing sector of the S&P 500.
Tech Stocks Continue to Thrive
Major tech stocks like Apple and Nvidia further boosted market sentiment. Apple shares increased by 1.2% following strong iPhone sales in China, while Nvidia advanced 0.8% after BofA Global Research raised its stock price target.
Dow’s Gains Hampered by American Express
Although the Dow hit its fifth record-high close in six sessions, its gains were held back by American Express, which dropped 3.1% due to weaker-than-expected revenue results.
Energy Sector Lags Behind
Energy stocks struggled, with the sector declining 0.4% as oil prices dropped and SLB reported lower-than-expected earnings. The performance of other oilfield service providers, such as Baker Hughes and Halliburton, also suffered as a result.
Corporate Earnings Drive Market Optimism
Despite concerns over high stock valuations and potential volatility due to the upcoming U.S. presidential election, strong corporate earnings have continued to push the market higher. Analysts believe future market movements will depend heavily on companies meeting earnings expectations.
