Mega-cap stocks fall after Netflix begins the day with poor earnings

The S&P 500 and the Dow Jones indices were higher on Wednesday after sliding for two straight sessions, while the Nasdaq remained muted as Netflix kicked off quarterly earnings for technology behemoths with a disappointing report.

 

The streaming service provider tumbled 7.1 per cent as it reported slower subscriber growth in the first quarter after a pandemic boom. Shares of mega-cap firms, including Apple, Amazon.com, Facebook and Tesla, fell between 0.3 per cent and 1.8 per cent.

 

In Asia, shares skidded, led by drops in technology companies and banks.

 

Worsening coronavirus outbreaks in Asia have cast a shadow over prospects for a rebound from the pandemic. Tokyo's Nikkei 225 fell more than 2% and other benchmarks also declined.           

 

The rising caseloads are straining medical systems from Japan to India and leading to a restoration of pandemic precautions such as travel restrictions, quarantine requirements and a dimming of nightlife.