US stocks were mixed on Thursday as investors braced for Netflix (NFLX) to kick earnings season into high gear. The S&P 500 fell about 0.1%, while the Dow Jones Industrial Average hovered just above the flat line after closing lower in the prior session. The Nasdaq Composite slipped 0.3%, extending tech’s recent slump.
Stocks have struggled amid concerns inflation is no longer cooling and the Federal Reserve could ease back on interest rate cuts. Fed officials fueled those worries on Thursday with Atlanta Fed President Raphael Bostic, reiterating that he doesn’t expect to lower rates until the end of the year.
That has put corporate earnings center stage as investors watch closely how well reports match up with high expectations. TSMC’s latest quarterly results were a mixed bag: The Taiwanese chip giant cautioned on its growth outlook this year outside of its memory chips business, sending the stock over 5% lower. The company, however, flagged “insatiable” appetite for AI as it posted a quarterly profit beat.
The earnings spotlight now shifts to Netflix, the first of the megacap tech companies to report. The streaming leader’s financial update later Thursday is seen by some as the first real test for stocks this earnings season, given the megacaps are still playing a big part in pushing markets higher.
US bond yields, a recent headwind for stocks, picked up again on Thursday. The 10-year Treasury yield was up six basis points, trading near 4.64%.
Overall, the market remains volatile as investors navigate through earnings season and keep a close eye on economic indicators. Stay tuned for more updates as the day progresses.
