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Overnight Markets: Netflix-led tech rally lifts Wall Street

Overnight Markets: Netflix-led tech rally lifts Wall Street

Wall Street bounced back on Tuesday after a two-session skid lifted by technology and internet stocks and hopes of more stimulus for China’s slowing economy.

The Dow Jones Industrial Average added 156 points, or 0.7%, to 24,066. The S&P 500 index gained 28 points, or 1.1%, to 2,610, its first close above 2,600 since 13 December. The Nasdaq Composite index advanced 118 points, or 1.7%, to 7,024.

Both the tech and communications services sectors rallied, rising more than 1%. Netflix shares jumped 6.3% after the video streaming company said it was raising prices for its US subscribers. Other internet stocks, including shares of Alphabet Inc, Amazon.com Inc and Apple Inc also gained.

Equities also found support from hints by Chinese officials at more stimulus in the near term, easing concerns about a slowdown in the world’s second-largest economy.

Stocks pared some gains briefly after the British parliament defeated Prime Minister Theresa May’s Brexit divorce deal by a wide margin. The rejection of the deal could lead to a disorderly exit from the European Union.

Earlier in the day, gains were capped by disappointing earnings reports from big US banks. JP Morgan Chase & Co, the largest US bank by assets, recovered from an earlier drop to gain 0.7% after missing quarterly profit estimates. Wells Fargo & Co retreated 1.6% after the lender said its loan book shrank and quarterly revenue fell in all of its major businesses.

Health insurer UnitedHealth Group jumped 3.6% and was the top gainer on the Dow after reporting better-than-expected quarterly profit.

Delta Air Lines Inc. gained 0.2% in choppy trade after the company posted better-than-expected fourth-quarter earnings, while meeting Wall Street expectations for revenue.

Sherwin-Williams Co. fell 4.1% after the company warned that full-year profits have fallen short of guidance and analyst expectations.

In Asia, share markets traded cautiously on Wednesday in morning session despite an overnight rally on Wall Street as investors assessed fresh uncertainties surrounding the UK’s withdrawal from the EU.

Japan’s Nikkei 225 fell about 0.7% in early trade, while the Topix index slipped 0.52%. In South Korea, the Kospi traded near flat at about 0.09%. In Australia, the benchmark ASX 200 trimmed fractional gains to trade flat.

In China, the Shanghai Composite index rose 0.02%, while Hong Kong’s Hang Seng index was down 0.06%.

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