US Stocks End Higher, Extending Rally

US stocks ended higher on Wednesday with the tech-heavy Nasdaq booking a 1.6 percent gain on positive earnings signals, although with a wary eye on inflation and more interest rate hikes by the Fed.

Netflix added 7.4 percent after the company predicted it would return to customer growth during the third quarter, while posting a smaller-than-expected 1 million drop in subscribers in the second quarter.

Other high-growth stocks extended gains following the forecast from the streaming service provider. Shares of Apple, Amazon, Microsoft and Meta rose by between 1 percent and 4.2 percent.

Electric vehicle maker Tesla rose 2 percent in extended trading after reporting a rise in quarterly profit after the bell.

“Equity prices are trending in a roller coaster fashion, currently being at the mercy of inflation, interest rates and earnings,” said Terry Sandven, chief equity strategist at US Bank Wealth Management.

“We're going to need another series of reporting cycles to confirm whether or not inflation indeed is getting under control.”

The Dow Jones rose 0.15 percent, to 31,874, the S&P 500 gained 0.59 percent, to 3,959, and the Nasdaq added 1.58 percent, to 11,897.

Seven of the 11 major sectors of the S&P gained ground, with consumer discretionary and information technology posting the biggest gains. Baker Hughes tumbled 8.3 percent as the largest S&P percentage loser, as the oilfield services provider reported a second-quarter loss. (Reuters)