Wall St. bounces back after two-day decline; Netflix slips



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Wall St. bounces back after two-day decline; Netflix slips

On Wednesday, all three key indices of Wall St. rebounded sharply after two straight day of declines, as investors seemed to have shrugged off inflation concerns while rekindling their bets on so-called growth stocks alongside cyclicals which would likely to be benefitted by the most from a ground-breaking reopening of US economy.

Nonetheless, streaming media giant Netflix Inc. shares tumbled as much as 7.5 per cent after the company had lowered its second-quarter estimate to 1 million new subscriptions, well-below a prior forecast of 4.8 million as a growing Netflix fatigue amid a steep lack of engaging contents was reportedly proffering an upscaled room for its smaller rivals such as Disney+, Hulu and HBO Max to muscle up.

However, other tech-linked growth stocks alongside the so-called value stocks, roared back throughout the day with nine out of eleven S&P 500 sub-indices wrapping up the session in a positive territory. On top of that, the trade-sensitive value stocks gained 1.1 per cent, outperforming a 0.8 per cent rise in growth stocks as traders were banking heavily on a solid economic rebound despite latest rise in pandemic cases across the globe with the US, India, Japan and Brazil being hurt by the most.

Small-cap Russell 2000 soared 2.4 per cent, too, marking up its strongest intra-session performance since March 1.

Wall St. rebounds as value stocks close in affirmative territory

Citing statistics, in the day’s Wall St.

closing bell, trade-sensitive Dow added 0.93 per cent to 34,137.31 and benchmark S&P 500 gained 0.93 per cent to 4,173.42, while tech-heavy Nasdaq climbed 1.19 per cent to wind down the day at 13,950.22. Meanwhile, adding that the tech-related growth stocks still had ample rooms to run, a chief market analyst at TD Ameritrade, JJ Kinahan said, “You take Netflix out of today’s equation, it’s simply a broad-based rally.