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What is the story about?
US stocks opened sharply lower on Friday, July 17, with technology shares leading the decline as concerns over artificial intelligence spending and a prolonged sell-off in semiconductor stocks weighed on investor sentiment.
The losses put the major Wall Street indexes on track to end the week in the red.
The Nasdaq Composite fell nearly 1.8% shortly after the opening bell, while the Dow Jones Industrial Average dropped around 0.2%. The S&P 500 also declined around 1.2%, extending losses after a weak session on Thursday.
Chipmakers remained under pressure following the unveiling of a powerful new artificial intelligence model by Chinese startup Moonshot AI, fuelling concerns about rising competition and AI-related spending. The weakness in semiconductor stocks continued to weigh heavily on the broader technology sector.
Meanwhile, fresh economic data showed US import prices rose 0.3% in June, defying expectations for a decline. On an annual basis, import prices increased 7.1%, marking the biggest yearly gain since August 2022, according to the Bureau of Labor Statistics. The stronger-than-expected reading underscored persistent price pressures despite easing energy costs.
US stock futures fall as chip sell-off deepens; Nasdaq futures slide nearly 2%, Netflix tumbles
US stock futures traded lower on Friday, July 17, with technology stocks leading the decline, as a fresh sell-off in semiconductor shares and concerns over artificial intelligence spending weighed on investor sentiment.
Futures tied to the tech-heavy Nasdaq-100 dropped nearly 1.9%, while S&P 500 futures fell about 0.9%. Dow Jones Industrial Average futures were down 333 points, or 0.6%, indicating a weak start to the trading session.
Chip stocks remained under pressure after extending losses from the previous session. The iShares Semiconductor ETF (SOXX) declined nearly 3% in premarket trading, while the VanEck Semiconductor ETF (SMH) lost more than 2%.
Among individual stocks, Applied Materials fell around 4%, Lam Research, Intel, KLA Corp., and Arm Holdings dropped about 3% each, while Nvidia slipped 2% and Micron Technology lost over 1%.
The weakness in the sector comes amid mounting concerns over AI-related spending and increased competition after Chinese startup Moonshot AI unveiled a new artificial intelligence model that it claims significantly narrows the gap with leading US offerings.
Meanwhile, Netflix shares plunged more than 10% in premarket trading after the streaming giant issued a weaker-than-expected revenue forecast for the third quarter, citing a "dynamic and competitive" entertainment landscape. The decline put the stock on track for its lowest opening level in nearly two years.
The technology-led sell-off has put Wall Street's major indexes on course for weekly losses after a subdued session on Thursday.
The losses put the major Wall Street indexes on track to end the week in the red.
The Nasdaq Composite fell nearly 1.8% shortly after the opening bell, while the Dow Jones Industrial Average dropped around 0.2%. The S&P 500 also declined around 1.2%, extending losses after a weak session on Thursday.
Chipmakers remained under pressure following the unveiling of a powerful new artificial intelligence model by Chinese startup Moonshot AI, fuelling concerns about rising competition and AI-related spending. The weakness in semiconductor stocks continued to weigh heavily on the broader technology sector.
Meanwhile, fresh economic data showed US import prices rose 0.3% in June, defying expectations for a decline. On an annual basis, import prices increased 7.1%, marking the biggest yearly gain since August 2022, according to the Bureau of Labor Statistics. The stronger-than-expected reading underscored persistent price pressures despite easing energy costs.
US stock futures fall as chip sell-off deepens; Nasdaq futures slide nearly 2%, Netflix tumbles
US stock futures traded lower on Friday, July 17, with technology stocks leading the decline, as a fresh sell-off in semiconductor shares and concerns over artificial intelligence spending weighed on investor sentiment.
Futures tied to the tech-heavy Nasdaq-100 dropped nearly 1.9%, while S&P 500 futures fell about 0.9%. Dow Jones Industrial Average futures were down 333 points, or 0.6%, indicating a weak start to the trading session.
Chip stocks remained under pressure after extending losses from the previous session. The iShares Semiconductor ETF (SOXX) declined nearly 3% in premarket trading, while the VanEck Semiconductor ETF (SMH) lost more than 2%.
Among individual stocks, Applied Materials fell around 4%, Lam Research, Intel, KLA Corp., and Arm Holdings dropped about 3% each, while Nvidia slipped 2% and Micron Technology lost over 1%.
The weakness in the sector comes amid mounting concerns over AI-related spending and increased competition after Chinese startup Moonshot AI unveiled a new artificial intelligence model that it claims significantly narrows the gap with leading US offerings.
Meanwhile, Netflix shares plunged more than 10% in premarket trading after the streaming giant issued a weaker-than-expected revenue forecast for the third quarter, citing a "dynamic and competitive" entertainment landscape. The decline put the stock on track for its lowest opening level in nearly two years.
The technology-led sell-off has put Wall Street's major indexes on course for weekly losses after a subdued session on Thursday.
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