US stocks reached new heights on Friday, with the S&P 500 setting a record and marking its longest weekly winning streak of 2024. This surge was largely fueled by Netflix’s impressive earnings report, which alleviated concerns about the performance of major tech companies in the upcoming earnings season.
Key Takeaways
- The S&P 500 rose approximately 0.4%, achieving a fresh all-time high.
- Netflix’s stock jumped around 11% following a strong earnings report.
- The Dow Jones Industrial Average and Nasdaq Composite also posted gains.
- Gold prices reached a record high, surpassing $2,700 an ounce.
S&P 500 Sets New Record
The S&P 500 (^GSPC) added about 0.4% on Friday, marking its sixth consecutive week of gains, the longest streak in 2024. The tech-heavy Nasdaq Composite (^IXIC) led the way with a 0.6% increase, while the Dow Jones Industrial Average (^DJI) rose 0.1% after hitting a new closing high the previous day.
This upward trend in major stock indices follows a strong performance from big banks at the start of the earnings season. The Dow led the weekly gains with a 0.9% increase, followed closely by the S&P 500 at 0.8% and the Nasdaq at 0.7%.
Netflix’s Earnings Boost
Netflix (NFLX) reported robust earnings late Thursday, easing fears that major tech companies might struggle in the third quarter. The streaming giant’s profit exceeded Wall Street estimates, with revenue and subscriber growth also surpassing expectations. Following the announcement, Netflix’s shares surged approximately 11%.
The company added over 5 million subscribers during the quarter, driven by popular programming and its expanding advertising business. This growth is a positive sign for investors, especially as other major tech companies prepare to report their earnings in the coming days.
Commodities and Market Sentiment
In commodities, gold prices soared to a record high, exceeding $2,700 an ounce. This surge is attributed to rising concerns about geopolitical tensions in the Middle East and uncertainty surrounding the upcoming US presidential election, prompting investors to seek safer assets.
Looking Ahead
As the earnings season continues, several major companies are set to report their quarterly results next week, including Coca-Cola (KO), Boeing (BA), Tesla (TSLA), and Hilton (HLT). Investors will also be keeping an eye on consumer sentiment data, which has shown signs of deterioration in recent months.
Additionally, the Federal Reserve is expected to release its Beige Book, providing insights into wage growth and pricing pressures across its 12 districts. This information will be crucial as the Fed prepares for its next policy meeting in less than three weeks.
Conclusion
The stock market’s performance on Friday reflects a positive outlook, driven by strong earnings from Netflix and a favorable economic environment. As major companies prepare to report their results, investors remain optimistic about the potential for continued growth in the market.