Dow climbs 316 points as US stocks snap 2-day losing streak

by Ryan

Stock trader
Peter Tuchman, right, works among fellow traders at a post on the floor of the New York Stock Exchange, Wednesday, March 4, 2020.

  • US stocks surged on Wednesday with the Dow up more than 300 points, snapping a two-day losing streak.
  • Investors bought the early morning dip in stocks, which was in part spurred by weak earnings results from Netflix.
  • The video-streaming company said it expects the slowest quarter of subscriber growth in history.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks surged on Wednesday and snapped a two-day losing streak as the Dow Jones industrial average moved up more than 300 points.

The market was initially lower in the morning, in part due to Netflix’s weaker-than-expected earnings results weighing on the technology sector. But investors bought the dip, with the reopening trade in cyclical stocks outperforming the high-growth technology sector.

The video streaming giant fell as much as 8% in Wednesday trades after forecasting the second quarter to be its slowest period of subscriber growth in history. The company saw a surge in business amid the COVID-19 pandemic as people spent more time at home, but now that trend is reversing as the pandemic begins to recede.

Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday:

Despite the decline in Netflix, Wall Street analysts are defending the company, saying that the current sell-off represents a solid buying opportunity as its long-term growth story remains intact.

The recent volatility in stocks isn’t stopping companies from staging successful IPOs. Artificial intelligence company UiPath surged as much as 26% in its public debut, pushing its valuation to $37 billion.

Intuitive Surgical soared past a $100 billion market valuation after it reported first quarter earnings that trounced even the most bullish forecasts.

A decline in bitcoin’s momentum over the past few days could be setting it up for a longer-term decline if it fails to reclaim the key $60,000 level, JPMorgan said in a note on Tuesday. Another potential downfall of bitcoin could be its heavy carbon footprint, an investment advisor told CNBC.

Facebook-backed digital currency Diem, originally called Libra, is planning to trial this year as the cryptocurrency boom continues, according to a CNBC report.

Shares of Juventus and Manchester United fell on Wednesday as the European Super League soccer plan imploded.

Oil prices were lower. West Texas Intermediate crude fell 2.65%, to $61.01 per barrel. Brent crude, oil’s international benchmark, dropped by 2.4%, to $65 per barrel.

Gold jumped 1%, to $1,795.20 per ounce.

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