US stocks pop as Netflix results shine

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US stocks climbed on Wednesday, with the S&P 500 headed for another all-time closing high as upbeat tech earnings led by Netflix buoyed hopes the record-setting rally will continue.

The S&P 500 (^GSPC) added 0.6%, building on the new closing high hit on Tuesday, while the Dow Jones Industrial Average (^DJI) signaled a return to gains with a rise of about 0.4%, or nearly 150 points.

Tech stocks outperformed, with the Nasdaq Composite (^IXIC) popping about 0.9% after quarterly earnings from Netflix (NFLX) helped paint a picture of consumer health. The streaming giant’s shares rallied nearly 10% in early market trading after posting a surge in subscribers that far outstripped expectations.

Meanwhile, blowout updates from chip gear maker ASML (ASML) and software maker SAP (SAP) lifted optimism for a chip industry revival and an AI-fueled boom in techs.

Magnificent Seven laggard Tesla (TSLA) is the highlight in the cavalcade of corporate reports on Wednesday, with deliveries in focus as the EV maker faces a tough market and tough rivals in China. Tech stalwart IBM (IBM) is also on the docket.

While earnings are center stage, the debate over when the Federal Reserve will cut interest rates rumbles on. With data driving expectations, updates on US manufacturing and services activity due Wednesday will provide more input ahead of the release of the Fed-favored PCE inflation figures on Thursday.

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Live1 update

  • Markets open higher as S&P heads for another record high

    Stocks opened higher on Wednesday with the S&P 500 (^GSPC) on pace to achieve another record close.

    The benchmark index added 0.6%, building on the new closing high hit on Tuesday, while the Dow Jones Industrial Average (^DJI) rose about 0.4%, or nearly 150 points.

    The Nasdaq Composite (^IXIC), buoyed by Netflix’s strong results, surged about 0.9% as tech stocks once again take center stage with Tesla results on tap after the bell.

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