NEW YORK, August 13, 2026, 16:25 EDT — U.S. stock markets did not open for trading.
- Communication services rose 1.56%, outperforming the S&P 500 by 0.91 point.
- Meta gained 2.8%, and Netflix advanced 5.4% following Pershing Square’s disclosure of a stake.
- Stable July producer prices raised the likelihood of a Fed pause in September to 63%.
Shares in communication-services outperformed on Wall Street on Thursday, supported by gains in two major platforms. The sector index gained 1.56%, compared with a 0.65% increase for the S&P 500. The resulting 0.91-point difference marked the day’s most notable shift following the inflation report.
Shares of Meta Platforms NASDAQ:META rose 2.8%. Netflix NASDAQ:NFLX surged 5.4% following a new stake revealed by Bill Ackman. The gains outpaced the benchmark’s record performance.
| Index or sector | August 13 move | Closing level |
|---|---|---|
| S&P 500 communication services | up 1.56% | Sector return |
| S&P 500 | up 0.65% | 7,798.99 |
| Nasdaq Composite | up 0.81% | 26,803.03 |
| Dow Jones Industrial Average | up 0.13% | 53,839.99 |
| S&P 500 real estate | up 1.34% | Sector return |
The S&P 500 finished at an all-time high. Gains were seen in seven out of 11 sectors. Communication services remained on top, and advancing stocks within the S&P outpaced decliners by 1.7 to one.
The macro catalyst stood out for its clarity. Final-demand producer prices for July were unchanged, missing economists’ forecasts for a 0.2% increase. Prices for goods declined by 0.7%, while service costs rose by 0.2%.
Producer inflation for the year eased to 4.7% from 5.5%. Traders priced in a 63% probability of unchanged rates in September. Reduced policy risk favors long-duration earnings, though execution risk remains.
| Communication-services industry | Index weight |
|---|---|
| Interactive media and services | 36.10% |
| Entertainment | 28.64% |
| Media | 16.47% |
| Diversified telecom services | 14.18% |
| Wireless telecom services | 4.61% |
The composition is significant. Interactive platforms and entertainment account for almost two-thirds of the index. Gains in Meta and Netflix thus have a greater impact than shifts within legacy carriers.
Ackman stated that the Netflix stake was initiated in the second quarter. He anticipates robust earnings growth from the recent additions to the portfolio. Pershing Square previously held Meta shares, offering a shared catalyst with Thursday’s top performers.
“This is an earnings surge, not a bubble.”
Jay Hatfield, chief executive of Infrastructure Capital Advisors, speaking to Reuters
| Current analyst view | Rating | Target | Date |
|---|---|---|---|
| Cantor Fitzgerald on Meta | Overweight | $750 | August 1 |
| Consensus among 48 analysts on Meta | Moderate Buy | $835.64 average | Late July |
| UBS on Netflix | Buy | $115 | July 17 |
| Rosenblatt on Netflix | Neutral | $75 | July 17 |
The range of analyst recommendations is broad. In this group, Netflix price targets span from $75 to $115. Meta continues to see a generally favorable consensus, but how fast AI investment turns into free cash flow is still a matter of discussion among analysts.
| Index characteristic | Latest verified figure |
|---|---|
| Total constituents | 23 |
| Weight of largest constituent | 19.9% |
| Combined weight of top 10 constituents | 76.3% |
| XLC forward price-to-earnings ratio | 13.16 |
| Forecasted EPS growth (3-5 years) | 8.82% |
The trade is marked by concentration, with the top 10 constituents making up 76.3% of the index. Continued leadership seen on Thursday may hold if platform earnings strengthen, though a swift reversal remains possible.
Risks: Producer inflation holds at 4.7%, significantly exceeding the Federal Reserve’s 2% target. Shifts in rate expectations are possible, and any drop in engagement or slower ad growth may weigh on major holdings in the sector.
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