Amazon (NASDAQ:AMZN) saw a record high of $2,449 before trading closed on Thursday at £2,408; up 4.36 percent.
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While Netflix (NASDAQ:NFLX) reached $449.30 before trading closed at $439.17, up 2.91 percent.
The S&P 500 index was also up, albeit slightly, at 0.58 percent. It’s been making a gradual recovery after hitting its lowest valuation in almost three years on March 16.
According to Reuters, analysts estimate that earnings for S&P companies fell 12.8 percent in the quarter – the biggest fall of its type since the 2008 financial crisis, if true.
But yesterday’s positive performance comes as US president Donald Trump announced a three-step guide issued by the federal government to help states relax their lockdown measures.
Netflix now has a higher market cap than Disney (Image: Chesnot / GETTY)
Amazon’s rise in stock prices brings the company’s market cap to $1.19 trillion.
It follows the news that the company is looking to employ 75,000 extra staff in the US alone in order to cope with increased demand through the lockdown period.
This is despite filling 100,000 new vacancies last month.
The company also said that it would be investing $500 million to increase staff pay.
But the firm has also come under fire over allegations that it is not doing enough to protect its staff from the Covid-19 outbreak.
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Donald Trump announces plans to relax lockdowns across the US (Image: Alex Wong / GETTY)
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Such allegations have led to Amazon deciding to temporarily close all of its distribution sites in France after a court said that it must stop all deliveries except for food, hygiene and medical supplies until a risk assessment is carried out.
But Amazon decided it would rather close its sites instead, as union members had called for, rather than risk the one million euro fine per day for breaching the court order.
Meanwhile Netflix’s record high means that it is now worth more than the entertainment giant Disney (NYSE:DIS).
Netflix has a market cap of $192.7 billion, compared to Disney’s $184.1 billion.
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Although both companies suffered huge dips in share price throughout March as the Covid-19 pandemic caused market volatility, Netflix seems to have bounced back while Disney is a lot slower to do so.
This is despite Disney launching its own video streaming service Disney Plus in Europe in mid-March, making it a direct rival to Netflix along with Amazon Prime.
It remains to be seen how Wall Street will react to the federal guidelines announced by Mr Trump yesterday.
Dominic Raab, pictured here in 2019, said the UK’s lockdown would be extended by three weeks. (Image: Leon Neal / GETTY)
Some states will open faster than others, depending on their situation regarding the Covid-19 outbreak.
Even Mr Trump, who has been vocal about restarting the economy, said that the plan would see the country take “one careful step at a time.”
He claimed that a prolonged lockdown would cause issues with public health including alcohol and drug abuse.
Steps taken by the US yesterday were in sharp contrast to those taken by the UK, as foreign secretary Dominic Raab announced that the UK lockdown would continue for three more weeks at least.
Mr Raab added that lifting restrictions too early would actually be damaging to the economy, the New York Times reports, as a second lockdown would likely follow.
He said that there would have to be a “sustained and consistent” fall in daily death rates, as well as more testing and protective equipment, before restrictions could be eased.