U.S. stocks rose on Thursday as investors watched Netflix’s (NFLX) earnings season get into full swing.
The S&P 500 (^GSPC) rose 0.5% and the Dow Jones Industrial Average (^DJI) rose about 0.7% after ending lower earlier. The Nasdaq Composite Index (^IXIC) rose 0.4% following the recent weakness in tech stocks.
Stocks have struggled on concerns that inflation is no longer cooling and that the U.S. Federal Reserve may ease its rate cuts. For this reason, company earnings are in the spotlight as investors focus on how well reports match their lofty expectations.
TSMC (TSM)’s latest quarterly results were mixed. Taiwan’s leading chip company warned about this year’s growth outlook outside of its memory chip business, sending its stock price down more than 5%. However, the company showed an “insatiable” appetite for AI as it posted a higher than quarterly profit.
The focus of earnings has now shifted to Netflix, which is the first of the big tech companies to report. The streaming leader’s financial update later Thursday is being seen by some as the first real test for stocks this earnings season, with mega-cap stocks still playing a big role in pushing the market higher.
Meanwhile, given the possibility of a “no-landing” for the economy, the market is still paying close attention to the debate over whether the U.S. Federal Reserve (Fed) may decide not to cut interest rates this year.
US Treasury yields have recently fallen from five-month highs, easing pressure on stock prices. The 10-year US Treasury yield (^TNX) is hovering around 4.56%.
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