The Nasdaq fell for a second straight day, putting AI chips and Netflix at the center of tonight's session.
US markets closed lower again on Thursday (16/07), a second straight down day. According to market data reported by Yahoo Finance, the Nasdaq Composite fell 1.47%, the S&P 500 slipped 0.51%, and the Dow Jones eased 0.20%.
The pressure came from one place, semiconductors. AI-chip names such as Nvidia and Micron led the decline, even after Taiwan Semiconductor posted strong earnings. Market concern over chip stocks reached a four-year high.
Beyond chips, Netflix drew attention. According to CNBC, Netflix shares fell about 8% to 9% in after-hours trading to a 52-week low after third-quarter revenue guidance missed expectations. Tonight, these two stories will set the tone.
Semiconductor stocks again led the Nasdaq lower. According to Yahoo Finance, pressure on AI chips pushed the index down 1.47% on Thursday (16/07). Concern over chip stocks reached a four-year high. Investors now wait to see whether the pressure eases tonight or extends into a third session.
Taiwan Semiconductor's strong earnings fail to lift sentiment
Taiwan Semiconductor posted solid second-quarter results, yet its stock did not follow. Investor focus shifted to plans for heavier capital spending. Strong earnings were not enough to turn the chip sector's tone, which is what makes tonight's reaction worth watching.
Netflix reported earnings per share of 0.80 US dollars, slightly above expectations, while revenue of 12.56 billion US dollars missed narrowly. According to CNBC, third-quarter revenue guidance of around 12.86 billion US dollars came in below analyst estimates. That combination drove a drop of about 8% to 9% in after-hours trading to a 52-week low.
Pre-Market Pulse 📊
Watch whether chip stocks attempt a technical bounce after two pressured days, and how Netflix opens after its post-earnings drop. Pre-market data for these five stocks will become clearer heading into tonight's US open.
Macro Note 📝
Tension in the Strait of Hormuz kept oil prices firm and pushed the US 10-year Treasury yield to 4.57%, according to FRED data. The rise in yields adds pressure on rate-sensitive technology stocks.
Conclusion
Tonight is a test for the AI-chip sector. After two days of losses, the market is looking for signs of stabilization, while Netflix faces continued pressure from soft guidance.
If you are watching these stocks, tonight's session could shape the near-term direction. Track Nvidia, Taiwan Semiconductor, and Netflix on their Gotrade stock pages. What stocks are you watching tonight?
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
