Stock futures are down this morning, reflecting a continuation of the downward trend seen yesterday. Nasdaq-100 futures fell by as much as 2% in premarket trading, driven largely by a nearly 7% drop in the VanEck Semiconductor ETF this week, marking one of its steepest declines in the past year.
The sell-off was triggered by an increased spending forecast from Taiwan Semiconductor, which negatively impacted major chipmakers like Arm Holdings, Micron Technology, and Advanced Micro Devices, all of which saw losses exceeding 5% on Thursday. Additionally, Alphabet's shares dropped 4% due to a delay in releasing a new artificial intelligence model.
While the Dow Jones Industrial Average managed to avoid some of the turmoil, buoyed by gains from UnitedHealth, all three major indexes are poised for negative weekly performance. In another development, Netflix's second-quarter results met expectations, but the company's disappointing earnings guidance led to an over 11% drop in its stock during extended trading.
Netflix's decision to reduce the frequency of its engagement reports has raised concerns, despite the company claiming that viewer engagement remains healthy. Furthermore, a recent survey indicates growing pessimism among Americans regarding the economy, with 60% expressing dissatisfaction and disapproving of President Trump's economic management.
Lastly, organized retail crime is evolving, with digital theft schemes reportedly costing retailers up to $1 billion annually, as criminals exploit less secure retail systems. The regulatory landscape is also shifting, as the SEC is expected to take a more active role in overseeing prediction markets, which have been traditionally regulated by the CFTC