Menu

Search

  |   Economy

Menu

  |   Economy

Search

Dow Jones and S&P 500 Hit Record Highs Driven by Netflix Surge

Image by Tumisu from Pixabay

Market Overview

The Dow Jones Industrial Average and S&P 500 reached record closing highs on Friday, buoyed by a surge in Netflix shares and overall gains in technology stocks. All three major Wall Street benchmarks celebrated their sixth consecutive weekly gain, marking their longest winning streak since late 2023.

Weekly Performance Highlights

- S&P 500: Up 0.9%

- Nasdaq Composite: Up 0.8%

- Dow Jones Industrial Average: Up 1%

Netflix shares soared 11.1%, closing at a record high after surpassing Wall Street's subscriber growth expectations, with a positive outlook for the remainder of the year. Other prominent tech stocks, often referred to as the "Magnificent Seven," also contributed to market gains. Apple rose 1.2% following a significant increase in new iPhone sales in China, while Nvidia gained 0.8% after Bank of America Global Research raised its price target.

Sector Analysis

The communication services sector, driven by Netflix, increased by 0.9%, making it the top-performing sector among the S&P 500, while the information technology sector rose by 0.5%.

Economic Outlook

David Waddell, CEO of Waddell & Associates, expressed optimism, stating, "It's kind of the 'what's not to like' market," highlighting favorable economic data and positive corporate earnings. However, concerns about stretched valuations— with the S&P 500 trading at nearly 22 times forward earnings— and the potential volatility surrounding the November 5 U.S. presidential election could pose risks.

Notable Declines

Despite the overall gains, American Express fell 3.1% after reporting quarterly revenue below estimates, contributing to a modest decline in the financial sector. The energy sector was the week's worst performer, dropping 2.6%, impacted by falling oil prices and disappointing earnings from SLB, which decreased by 4.7%.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.