S&P 500: Market Rises with Netflix Earnings and Trade Policies in the Spotlight

Wall Street Climbs as Traders Focus on Trump’s Trade Policies

Wall Street’s main indexes are advancing on Tuesday, with the Dow Jones Industrial Average hovering at its highest level in over a month. Investors are closely following President Donald Trump’s trade policy signals and awaiting clarity on his tariff plans. Trump has suggested potential tariffs on Canadian and Mexican goods but has stopped short of making immediate commitments, easing concerns about an abrupt escalation in trade tensions.

While uncertainty persists around Trump’s trade agenda, Goldman Sachs has lowered its projected likelihood of sweeping tariffs to 25%, down from a prior estimate of 40%. Market sentiment is being buoyed by expectations that negotiations could reduce the severity of trade measures.

Meanwhile, Netflix is in focus as the streaming giant prepares to report earnings after the bell.

How Are the Major Indexes Performing?

The S&P 500 is up 1%, touching a one-month high, with nine of its 11 sectors trading higher. Industrials are leading the gains with a 1.8% increase, bolstered by strong performances in aerospace and manufacturing. The Dow is up 0.8%, supported by strength in automakers and industrial firms, while the tech-heavy Nasdaq is climbing 0.6%. The small-cap Russell 2000 is outperforming, rising 1.5%.

What to Watch for in Netflix Earnings

Netflix is in focus ahead of its highly anticipated earnings report after the closing bell. The streaming giant is expected to provide updates on its advertising-supported model, recent live event offerings, and the impact of its password-sharing crackdown. Analysts forecast earnings of $4.20 per share and revenue of $10.11 billion.

Market participants are particularly interested in Netflix’s advertising tier, which has seen over 30 million accounts convert in the past six months. With a significant focus on revenue growth and reduced subscriber churn, Netflix’s updates could set the tone for investor sentiment in the tech sector.

Which Sectors and Stocks Are Moving the Most?

Automakers are rallying as concerns over tariffs ease. General Motors is surging 4.7% following an upgrade from Deutsche Bank, and Ford is adding 1.7%. Industrial giant 3M is climbing 4.5% after reporting better-than-expected quarterly profits, driven by strong demand for adhesives and electronics.

On the downside, technology stocks are under pressure. Apple is sliding 4.5% after Jefferies downgraded the stock, citing a subdued outlook for its AI initiatives. Meanwhile, Walgreens is tumbling 13.6% following a federal lawsuit alleging improper opioid prescriptions.

Healthcare stocks are among the strongest performers, with Moderna jumping 6% after securing $590 million in federal funding to develop a bird flu vaccine.

What Economic Indicators Are Driving Market Action?

Recent inflation data is showing signs of cooling, providing some support to equities. However, inflation remains above the Federal Reserve’s 2% target, raising concerns that trade policies could complicate the Fed’s timeline for easing monetary policy. Traders are pricing in the first interest rate cut by July, with the Fed widely expected to hold rates steady at its upcoming meeting.

What’s Ahead for Traders?

Investors are closely monitoring corporate earnings for direction, with Netflix leading the focus. Updates from its earnings report could influence tech sector performance.

Looking forward, traders will continue watching for developments in Trump’s trade policies, as any concrete action could significantly affect market sentiment. With inflation concerns and geopolitical risks still in play, market participants may remain cautious while seeking opportunities in sectors tied to domestic growth and defensive strategies.

More Information in our Economic Calendar.