AP Photo/Richard Drew
- US stocks surged on Wednesday with the Dow up more than 300 points, snapping a two-day losing streak.
- Investors bought the early morning dip in stocks, which was in part spurred by weak earnings results from Netflix.
- The video-streaming company said it expects the slowest quarter of subscriber growth in history.
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US stocks surged on Wednesday and snapped a two-day losing streak as the Dow Jones industrial average moved up more than 300 points.
The market was initially lower in the morning, in part due to Netflix's weaker-than-expected earnings results weighing on the technology sector. But investors bought the dip, with the reopening trade in cyclical stocks outperforming the high-growth technology sector.
The video streaming giant fell as much as 8% in Wednesday trades after forecasting the second quarter to be its slowest period of subscriber growth in history. The company saw a surge in business amid the COVID-19 pandemic as people spent more time at home, but now that trend is reversing as the pandemic begins to recede.
Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:
- S&P 500: 4,173.44, up 0.93%
- Dow Jones industrial average: 34,138.63, up 0.94% (316.41 points)
- Nasdaq composite: 13,950.22, up 1.19%
Despite the decline in Netflix, Wall Street analysts are defending the company, saying that the current sell-off represents a solid buying opportunity as its long-term growth story remains intact.
The recent volatility in stocks isn't stopping companies from staging successful IPOs. Artificial intelligence company UiPath surged as much as 26% in its public debut, pushing its valuation to $37 billion.
Intuitive Surgical soared past a $100 billion market valuation after it reported first quarter earnings that trounced even the most bullish forecasts.
A decline in bitcoin's momentum over the past few days could be setting it up for a longer-term decline if it fails to reclaim the key $60,000 level, JPMorgan said in a note on Tuesday. Another potential downfall of bitcoin could be its heavy carbon footprint, an investment advisor told CNBC.
Facebook-backed digital currency Diem, originally called Libra, is planning to trial this year as the cryptocurrency boom continues, according to a CNBC report.
Shares of Juventus and Manchester United fell on Wednesday as the European Super League soccer plan imploded.
Oil prices were lower. West Texas Intermediate crude fell 2.65%, to $61.01 per barrel. Brent crude, oil's international benchmark, dropped by 2.4%, to $65 per barrel.
Gold jumped 1%, to $1,795.20 per ounce.