by Noel Randewich and Johann M Cherian

(Reuters) – The New York Stock Exchange ended mixed on Wednesday, with the S&P-500 again beating its closing record, as strong results from Netflix fueled investor optimism, as did the semi-public sector. drivers, one of the catalysts for the rise of artificial intelligence.

The Dow Jones index lost 0.26% to 37,806.39 points.

The broader S&P-500 gained 0.08% to 4,868.55 points.

The Nasdaq Composite advanced 0.36% to 15,481.92 points.

If the Dow Jones fell, the S&P-500 broke its closing record for the fourth consecutive session. The Nasdaq settled at a two-year high, closing in on its November 2021 record high.

This climate of confidence on Wall Street benefited Microsoft, up 1.3% and whose valuation exceeded the threshold of $3,000 billion for the first time.

Other members of the “Magnificent Seven” who were catalysts for the S&P-500 last year, Alphabet, Amazon and Meta Platforms all finished in the green.

After reporting a significant increase in subscribers in the fourth quarter on Tuesday post-closing, significantly exceeding Wall Street expectations, Netflix jumped nearly 10.7% to reach a two-year peak.

Investors believe that the streaming giant has won the battle against its competitors in the industry, thanks in particular to its measures against password sharing and its extensive catalog.

Buoyed by Netflix’s gains, the communications services sector gained 1.2% and climbed to a two-year high.

“Technology companies – particularly the ‘Great Seven’ and those linked to artificial intelligence (AI) – announced insane results and forecasts last year. We will see over the next ten days what will happen pass, but the early indications are quite positive,” commented Mike Dickson, director of research at Horizon Investments.

Tesla published its quarterly results after the close.

Nvidia and Broadcom gained more than 2% to set records, while AT&T, on the other hand, fell by 3% after saying it expected an annual profit lower than expectations.

Turning to economic data, a private report released today showed that U.S. business activity rebounded in January and inflation appeared to ease, suggesting that the U.S. economy is starting the year in a solid manner.

This resilience of the economy and cautious comments from officials at the Federal Reserve (Fed) have prompted investors to review their expectations on the speed with which the American central bank will lower rates.

While they mainly bet in December on a drop in interest rates in March, traders now expect this to take place in May, shows FedWatch.

( Jean Terzian)

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