Wall Street Close: Big tech surges after strong Netflix subscriber numbers


  • All three major indices rose to and closed at all -time intra-day highs.
  • Big tech names led the charge, seemingly stoked by strong Netflix subscriber gains.
  • Unwinding of hedging after a smooth transition of Presidential power in the US was also suggested as a positive.

The S&P 500 closed with gains of about 1.4%, the down with gains of about 0.8% and the Nasdaq 100, which led the pack, with gains of around 2.3%. All three hit fresh all-time intraday and closing highs, with the S&P 500 surging and closing above 3850 for the first time ever, the Dow powering back above 31,000 and the Nasdaq 100 flying back above 13,000 to close just under 13,300.

Big tech names led the charge on Wednesday (hence Nasdaq 100 outperformance), with Netflix finishing the session up 16.85% to hit all-time high levels following Tuesday’s after-market earnings released that showed the entertainment service gaining subscribers at a much faster than the anticipated rate in the fourth quarter. This seemingly gave tailwinds to other major Tech names (Apple +3.3%, Microsoft +3.7%, Alphabet +5.4%, Facebook +2.4%, Amazon +4.6% and Twitter +3.6%).

Elsewhere, things were a little more mixed but the tone was broadly positive, aside from in the banking sector, which was weighed by falling real yields as a result of rising inflation expectations. Some desks argued that in wake of the completion of a smooth transition of power from the Trump administration to the Biden administration, some unwinding of hedges could have played into strength seen in the stock market.

In terms of other macro drivers, pandemic news took a back seat, but there were some interesting updates. Somewhat pessimistically, Bloomberg reported that the US President Joe Biden’s team is increasingly worried the coronavirus pandemic is spiralling out of control and there is concern that this might imperil his promise to contain the outbreak. Biden’s team is reportedly particularly worried about lagging vaccinations and the spread of a more transmissible strain in the country.

Even if the next few months do go worse than markets are currently pricing in given the above, equity markets continue to discount the downbeat near-term economic outlook in favour of optimism regarding US economic performance during the second half of 2021, assuming vaccines deliver a strong degree of immunity.

Share: Feed news

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended content

Editors’ Picks

GBP/USD bulls retain control near 1.3300 mark, highest since March 2022

GBP/USD bulls retain control near 1.3300 mark, highest since March 2022

The GBP/USD pair trades with a positive bias for the third straight day on Friday and hovers around the 1.3300 mark during the Asian session, just below its highest level since March 2022 touched the previous day.

GBP/USD News
USD/JPY pops and drops on BoJ's expected hold

USD/JPY pops and drops on BoJ's expected hold

USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.  

USD/JPY News
Gold consolidates weekly gains, with sight on $2,600 and beyond

Gold consolidates weekly gains, with sight on $2,600 and beyond

Gold price is looking to build on the previous day’s rebound early Friday, consolidating weekly gains amid the overnight weakness in the US Dollar alongside the US Treasury bond yields. Traders now await the speeches from US Federal Reserve monetary policymakers for fresh hints on the central bank’s path forward on interest rates.

Gold News
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum

Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum

Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures