The U. S. stock market continued its bullish trend, with the S&P 500 rising 0.3% to close at a record 7,041.28. The Nasdaq composite also reached a new high, gaining 0.4% to finish at 24,102.70, marking its 12th straight day of gains, the longest winning streak since July 2009. The Dow Jones Industrial Average followed suit, climbing 115 points, or 0.2%, to 48,578.72. Optimism was fueled by strong corporate earnings and hopes of a resolution to the conflict in the Middle East. President Trump's statement that the war with Iran is "very close to over" further boosted market sentiment.
However, not all companies shared in the market's enthusiasm. Netflix shares plunged nearly 10% in after-hours trading despite reporting upbeat Q1 2026 results. The streaming giant's revenue rose 16% year-over-year to $12.25 billion, exceeding expectations of $12.18 billion. Earnings per share also beat forecasts, coming in at $1.23 compared to the anticipated $0.79.
The sell-off was attributed to weaker-than-expected Q2 guidance and the announcement that co-founder and Chairman Reed Hastings will be leaving the company's board in June after a 29-year tenure. Netflix projected Q2 revenue of $12.57 billion, falling short of analysts' expectations of $12.64 billion. The company reaffirmed its full-year revenue growth guidance of 12%-14% and an operating margin of 31.5%. Netflix's advertising business continues to grow rapidly, with the company expecting ad revenue to reach approximately $3 billion in 2026.
Other market movers included TSMC, which posted a 58% jump in first-quarter profits thanks to strong AI demand. The price of gold rose to $4,818.89 per ounce.
