US stocks rose on Thursday as investors prepared for Netflix (NFLX) to kick earnings season into high gear.
The S&P 500 (^GSPC) rose 0.5%, while the Dow Jones Industrial Average (^DJI) rose about 0.7% after closing lower in the previous session. The Nasdaq Composite (^IXIC) rose 0.4% after the recent decline in the technology sector.
Stocks struggled amid concerns that inflation is no longer cooling and that the Federal Reserve may ease interest rate cuts. This has put corporate earnings at the center of attention as investors closely watch how reports match high expectations.
TSMC's (TSM) recent quarterly results were mixed: The Taiwanese chip giant warned of its growth prospects this year outside of its memory chip business, sending the stock down more than 5%. However, the company cited an “insatiable” appetite for AI as it reported quarterly earnings.
The earnings focus now turns to Netflix, the first of the tech giants to report earnings. The streaming leader's financial update later Thursday is viewed by some as the first real test for stocks this earnings season, given that larger companies still play a big role in driving markets higher.
Meanwhile, the market is still watching the debate over whether the Fed may refrain from cutting interest rates this year, in light of the “no bear” chances for the economy.
US bond yields fell from their highest levels in five months recently, easing pressure on stocks. The 10-year Treasury yield (^TNX) was trading near 4.56%.
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