Netflix Adds $20 Billion in One Day as Wall Street Rallies

U.S. equities closed broadly higher on Wednesday, with technology shares leading gains and streaming giant Netflix adding roughly $20 billion to its market capitalization in a single session. 

The rally came as investor concerns about the cost and disruption risks of artificial intelligence eased, giving way to renewed optimism about its long-term productivity benefits.

All three major U.S. indexes ended the session in positive territory. The Dow Jones Industrial Average rose 0.6%, gaining nearly 300 points for its second consecutive daily advance.

The Nasdaq Composite climbed 1.3%, marking its highest close in two weeks, while the S&P 500 added 0.8%, also notching a second straight day of gains.

The Philadelphia Semiconductor Index advanced ahead of quarterly earnings from Nvidia, while the S&P Software & Services index outperformed significantly after recovering from a 23% year-to-date decline.

Comments from Richmond Federal Reserve President Tom Barkin further buoyed sentiment. He noted that while it remains unclear whether AI adoption will displace workers, the technology could ultimately empower employees and enhance labor market efficiency.

Netflix shares jumped 6%, posting their strongest daily gain in over 10 months. The surge followed reports that the company’s co-CEO is set to attend meetings at the White House to discuss a potential acquisition of streaming and studio assets from Warner Bros..

The reported discussions include broader regulatory considerations, as Republican attorneys general from 11 states have urged the U.S. Department of Justice to conduct a comprehensive review of the proposed transaction, arguing it could affect America’s dominance in the global film industry.

The prospect of strategic expansion appears to have reinforced investor confidence in Netflix’s long-term growth trajectory.