TLDR
- US stock futures are falling Friday, with Nasdaq 100 futures down around 1.8%
- Chip stocks led the decline, with the PHLX Semiconductor Index dropping over 4% Thursday
- Netflix fell more than 10% in premarket after a weak third-quarter revenue forecast
- Japan’s Nikkei 225 dropped 4% Friday, signaling the sell-off is spreading globally
- Oil prices edged higher as US-Iran tensions added to market uncertainty
US stock futures fell sharply Friday morning, putting Wall Street on track for weekly losses. Nasdaq 100 futures dropped around 1.8%, S&P 500 futures fell roughly 0.9%, and Dow Jones futures slid about 374 points, or 0.7%.
The sell-off was led by semiconductor stocks. The PHLX Semiconductor Index fell more than 4% on Thursday, dragged down by declines in Advanced Micro Devices, Broadcom, and Micron.
These chip stocks had been key drivers of the market’s rally from March lows. But investors are now questioning how long the artificial intelligence spending boom can continue.
Netflix added to the negative mood. The streaming company’s stock fell more than 10% in premarket trading after its third-quarter revenue forecast came in below what analysts expected.
Netflix cited a “dynamic and competitive” entertainment landscape as it faces pressure from rivals.
Global Markets Feel the Pressure
The sell-off is not confined to the US. Japan’s Nikkei 225 fell 4% on Friday, a sign that global markets are reacting to the same concerns around AI spending and tech valuations.
“Global equities are continuing to slump, as fresh doubts about the AI trade have driven a pronounced sell-off in tech stocks,” said Deutsche Bank macro strategist Henry Allen.
He added: “There’s no sign of any letup this morning in Asia.”
Oil prices moved in the opposite direction. Brent crude ticked up 0.3% to $84.49 a barrel, while West Texas Intermediate rose 0.8% to $79.55 a barrel, supported by rising tensions between the US and Iran.
The yield on the 10-year US Treasury Note slipped 3 basis points to 4.53%, and the dollar was flat against a basket of major currencies.
On the earnings front, Truist Financial and Fifth Third Bancorp are due to report results Friday. The University of Michigan’s consumer sentiment survey will also be released, offering a read on how Americans feel about the economy and gas prices.
The broader market had rallied strongly between March and mid-2026, driven largely by enthusiasm around artificial intelligence and the chip companies supplying the technology. That momentum has stalled in recent sessions as investors weigh the actual returns on AI investment.
As of Friday morning, all three major index futures were pointing to losses at the open, with tech stocks bearing the heaviest pressure.
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