Closing Bell: Broader Sector Participation Pushes Markets to New Closing Highs

Key Points

• The S&P 500 and Nasdaq‑100 closed at fresh all‑time highs, with gains led by Energy, Real Estate, and Information Technology.
• Netflix (NFLX) delivered a mixed Q1 update after the close, with weaker‑than‑expected Q2 guidance weighing on the outlook.
• TSMC posted record Q1 profits, raised its 2026 growth outlook above 30%, and cited extremely strong, Nvidia‑led AI demand.

The S&P 500 and Nasdaq‑100 closed at fresh record highs, signaling a broadening market rally. The S&P 500 gained 0.26%, the Nasdaq‑100 climbed 0.49%, and the Russell 2000 added 0.22%. Leadership came from Energy, Real Estate, and Information Technology, while Health Care and Industrials lagged the broader advance.

Netflix Beats Q1 Revenue, Q2 Outlook Falls Short

Netflix (NFLX) posted a mixed Q1 update after the close, with revenue of $12.25 billion topping the IBES estimate of $12.18 billion, but its Q2 outlook coming in light. The company guided Q2 EPS of $0.78 versus an $0.84 estimate and Q2 revenue of $12.57 billion versus expectations of $12.63 billion, though it projected a healthy 32.6% operating margin. Full-year 2026 guidance was left unchanged, with Netflix reiterating its margin targets and expecting year-over-year operating margin growth in Q3 and Q4. The company also disclosed leadership and strategic updates, including Reed Hastings not standing for board re-election, announced price adjustments in Spain, and plans to launch an updated mobile experience featuring a vertical video discovery feed by the end of April. Netflix now sees 2026 free cash flow at roughly $12.5 billion, largely reflecting the after-tax impact of a Warner Bros.-related termination fee.

TSMC Delivers Record Quarter as AI Demand Drives Strong Outlook

TSMC (TSM) delivered record Q1 2026 results and reinforced its bullish AI-driven outlook, posting net income up 58% and revenue of roughly $35 billion, both beating expectations and marking a fourth consecutive quarter of record profits. The company raised its full-year 2026 revenue growth forecast to above 30% in U.S. dollar terms and guided Q2 revenue sharply higher to $39–$40.2 billion, alongside strong margin expectations. Management described AI demand as “extremely robust,” with Nvidia now its largest customer, while capacity remains very tight across advanced nodes and packaging, prompting elevated capex at the high end of its $52–56 billion range and even higher spending planned over the next three years.

Market Events for Tomorrow (ET)

11:30 AM

• FOMC Member Daly Speaks

12:15 PM

• FOMC Member Barkin Speaks

2:00 PM

• FOMC Member Waller Speaks

Notable Earnings for Tomorrow

• A.M: ALV, ALLY, BMI, ERIC, FITB, RF, STT, TFC
• P.M: N/A

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