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US stock futures slid on Friday, putting major indexes on track for weekly losses, as the semiconductor sector continued to drag markets lower.
Futures on the Dow Jones Industrial Average (YM=F) dropped 0.6% and the S&P 500 (ES=F) fell roughly .8% while contracts for the Nasdaq-100 (NQ=F) shed around 1.4% following a downbeat day on Wall Street and the release of the world’s most powerful open AI model.
Netflix stock (NFLX) declined by over 9% in extended trading after the company’s third quarter revenue forecast disappointed the Street as the streaming giant battles a “dynamic and competitive” entertainment landscape.
The market’s tech-driven rally from March lows has stalled as investors reassessed companies’ spending on artificial intelligence, clouding optimism for the AI trade. Chip stocks, as tracked by the PHLX Semiconductor Index (^SOX), tumbled over 4% on Thursday, and Asian stocks followed suit, with Japan’s Nikkei 225 (^N225) falling 4%.
A few smaller banks, including Truist Financial Corporation (TFC) and Fifth Third Bancorp (FITB), round out the week’s earnings docket, while the University of Michigan’s consumer sentiment data will give insight into how Americans are thinking about the economy and higher gas prices.
