Netflix Inc ( NFLX ) shares have gained 2.28%, reaching $647.55 in Tuesday’s trading session. The lower-than-expected Producer Price Index (PPI) for July has sparked optimism about a potential larger Federal Reserve interest rate cut, which has positively impacted Netflix’s stock.

The PPI rose just 0.1% month-over-month, below the forecasted 0.2% increase, indicating softer inflation pressures. This could lead to a more significant Fed rate cut next month, reducing borrowing costs for companies.

For Netflix ( NFLX ), a larger rate cut could make financing for new content and technology investments cheaper and more accessible. This is crucial as Netflix ( NFLX ) continues to invest heavily in programming to attract and retain subscribers.

Lower interest rates also generally boost consumer spending power, potentially leading to increased subscriptions and engagement with streaming services like Netflix ( NFLX ).

Additionally, the broader market reaction saw tech stocks, including Netflix ( NFLX ), rise. The Invesco QQQ Trust, Series 1 ( QQQ ) , reflecting technology shares, climbed 1.7% following the PPI report. This positive movement in tech stocks typically benefits Netflix ( NFLX ), aligning with broader market trends.

Read Also: 3 Dividend Stocks To Watch As Fed Weighs Interest Rate Cuts

How To Buy NFLX Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Netflix’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, NFLX has a 52-week high of $697.47 and a 52-week low of $344.73.