The Daily Breakdown took a closer look at Netflix stock, as it contends with $100 resistance and as markets digest the ceasefire news.
Before we dive in, let’s make sure you’re set to receive The Daily Breakdown each morning. To keep getting our daily insights, all you need to do is log in to your eToro account.
What’s Happening?
Markets are still digesting the ceasefire news out of the Middle East, which sent the S&P 500 up 2.5% yesterday and the Nasdaq 100 up 2.9%. Bulls may have been hoping for a repeat of the move we saw exactly one year ago, when the S&P 500 surged 9.5% in a single day after the White House pivoted on tariffs. Stocks are slightly lower in pre-market trading as investors assess how durable this rally may be.
👀 S&P 500 Spotlight
Energy and materials stocks were among yesterday’s biggest losers, including APA, LyondellBasell, CF Industries, and Marathon Petroleum. More surprising was the weakness in software, even as tech broadly outperformed. Palantir, Paycom, Intuit, and ServiceNow all lagged.
Teradyne was a bright spot, surging nearly 12% to record highs, while Intel and Carnival ranked as the second- and third-best performers in the index.
⚡ Crypto Corner
Bitcoin and Ethereum are showing some promise in this week’s rally, but several other major cryptos — including Stellar, XRP, Dogecoin, and Solana — are still struggling to gain traction. Bulls are watching to see whether those names can build some momentum. Meanwhile, Morpho and Render continue to trade well.
Want to receive these insights straight to your inbox?
Sign up here
The Setup — Netflix
Netflix suffered a steep decline, falling more than 40% from its summer highs to its February lows near $75. Since then though, the stock has staged a strong rally, climbing back toward $100. Now it’s running into resistance at that level. A breakout above $100 could keep the recent bullish momentum intact, but if that level holds as resistance, the recent lows in the $90 to $92 range could come back into play.
Options
Investors who are bullish could consider calls or call spreads as one way to speculate on further upside, while bearish investors could consider puts or put spreads to speculate on a further move to the downside. For options traders, it may be advantageous to have adequate time until the option’s expiration.
To learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
META
Meta was yesterday’s top-performing Magnificent 7 stock, rising more than 6%. Shares have rebounded more than 17% from their March 27 low, although they’re still down about 7% this year. The stock is higher again this morning after Meta expanded its long-term CoreWeave deal, committing $21 billion for AI infrastructure capacity through December 2032. The move builds on a prior $14.2 billion agreement and reinforces Meta’s push to scale AI infrastructure through CoreWeave’s Nvidia GPU-powered cloud services. Dive into Meta’s fundamentals.
USO
After a monstrous rally where the USO ETF rallied in seven straight weeks and gained more than 80%, it suffered its worst one-day decline so far of the year, falling 9.8% on Wednesday. At one point, the ETF was down more than 14% on the day and it’s up slightly today — giving bulls a little reprieve. Check out the chart for USO.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
