US stocks rose on Thursday as investors braced for Netflix (NFLX) to kick earnings season into high gear.
The S&P 500 (^GSPC) gained 0.5%, while the Dow Jones Industrial Average (^DJI) rose about 0.7% after closing lower in the prior session. The Nasdaq Composite (^IXIC) increased 0.4% following tech’s recent slump.
Stocks have struggled amid concerns inflation is no longer cooling and the Federal Reserve could ease back on interest rate cuts. That has put corporate earnings center stage as investors watch closely how well reports match up with high expectations.
TSMC’s (TSM) latest quarterly results were a mixed bag: The Taiwanese chip giant cautioned on its growth outlook this year outside of its memory chips business, sending the stock over 5% lower. The company, however, flagged “insatiable” appetite for AI as it posted a quarterly profit beat.
The earnings spotlight now shifts to Netflix, the first of the megacap tech companies to report. The streaming leader’s financial update later Thursday is seen by some as the first real test for stocks this earnings season, given the megacaps are still playing a big part in pushing markets higher.
Meanwhile, the market is still keeping one eye on the debate over whether the Federal Reserve could hold off from cutting interest rates this year, given the chances of a “no landing” for the economy.
US bond yields slipped from recent five-month highs, easing pressure on stocks. The 10-year Treasury yield (^TNX) was trading near 4.56%.
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Thu, April 18, 2024 at 8:35 AM PDT
Fed’s Williams doesn’t see any ‘urgency’ to cut rates
Yahoo Finance’s Jen Schonberger reports:
New York Fed president John Williams said Thursday he doesn’t see any “urgency” to cut interest rates, becoming the latest central bank official to dial back the timing of any easing in monetary policy.
Rates will need to come down at some point, he added, but that will be driven by the economy.
“I think we’ve got interest rates in a place that is moving us gradually to our goals,” Williams said during a Semafor conference in Washington, DC.
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