Netflix earnings push Wall Street higher
|US stocks have been given fresh momentum by Netflix’s solid results, while the US dollar is attempting to stem its recent losses, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Netflix earnings power fresh risk-on move
Thoughts of tariffs have been banished, if only briefly, from investors’ minds thanks to another set of stellar numbers from Netflix. The end of 2024 saw a lot of worry about whether such tech stocks could justify their eye-watering valuations. Netflix, at least, has proved it is worthy of its premium rating. The news has bolstered risk appetite across the board, and the S&P 500 finds itself knocking on the door of a new record high, joining those set by the FTSE 100 and Dax in recent sessions.
Dollar stabilises after run of losses
An absence of economic news today has not prevented a small recovery in the greenback. Fears (or hopes) of immediate tariffs have been misplaced so far, but the announcement of a $500 billion investment by Softbank and others suggests that businesses will continue to flock to the US economy now that Trump is in power. Notably the dollar has edged higher against the yen despite the likelihood of a BoJ rate hike this week – worries about tariffs and their impact may well cause Japanese policymakers to err on the side of caution when making predictions about the path of rates further into 2025.
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