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. ”