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.
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 came in strong with economic output at its highest levels in seven months — just ahead of Thursday’s first reading of Q4 GDP and Friday’s release of the Fed-favored PCE inflation figures.