U.S. stock futures drop as chipmakers decline

Futures declined after a negative session on U.S. stock market, where chip stocks tumbled despite positive earnings from industry bellwether TSMC

U.S. stock index futures dropped on Thursday evening amid continued weakness in technology and chipmaking stocks, with disappointing guidance from Netflix further pressuring the sector.

Futures declined after a negative session on U.S. stock market, where chip stocks tumbled despite positive earnings from industry bellwether TSMC. Hawkish comments from central bank officials also weighed.

S&P 500 Futures declined 0.5% to 7,537.0 points by 01:51 GMT. Nasdaq 100 Futures dropped 0.9% to 28,961.25 points, while Dow Jones Futures shed 0.5% to 52,518.0 points.

Netflix Inc slid almost 9% in aftermarket trade after the streaming company issued current-quarter revenue and profit guidance that missed stock market estimates.

The disappointing outlook largely overshadowed strong second-quarter earnings from the company.

Losses in the stock added to pressure on technology shares, which were already nursing deep losses this week amid growing questions about sky-high artificial intelligence-driven valuations.

Alphabet also battered tech stocks, slipping 4.4% after a report said the company delayed the release of its flagship Gemini 3.5 Pro AI model.

But chipmakers remained the worst performers, with the Philadelphia Semiconductor Index slipping 4.3% during Thursday’s session. TSMC dropped 2.3% even as the world’s largest chipmaker logged stellar second-quarter earnings and hiked its revenue guidance on strong demand from the AI industry.

But TSMC also forecast much higher capital spending for the year, adding to concerns over increased spending on AI and whether the exponential growth priced into company valuations was sustainable.

Intel Corporation declined 5.8%, while NVIDIA Corporation dropped 2.4% on Thursday.

Focus in the coming week will be on a host of key quarterly earnings from some of stock market’s biggest stocks, including Alphabet, Amazon.com Inc, Microsoft Corporation, and Meta Platforms Inc.

Stock indexes ended lower on Thursday, pressured chiefly by losses in tech shares, while heightened tensions with Iran and hawkish comments on interest rates also weighed.

The NASDAQ Composite slipped 1.5%, the S&P 500 dropped 0.5%, and the Dow Jones Industrial Average shed 0.2%.