Wall Street futures slide as chip selloff deepens, Netflix adds pressure

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Highlights

Premarket declines accelerate as SanDisk, Western Digital, Seagate Technology, and Micron Technology drop 4.6%–6.5%, dragging the Philadelphia SE Semiconductor index to a near two-month low and worst week since March 2025.
Netflix shares fall 9.4% after projecting third-quarter revenue and earnings below expectations, compounding growth stock losses as Intuitive Surgical drops 10.8% despite beating Q2 estimates.
As of 4:55 a.m. ET, Dow E-minis drop 352 points, S&P 500 E-minis slide 78.25 points, Nasdaq 100 E-minis lose 598.25 points, while CBOE Volatility Index rises 1.8 points to 18.53 amid escalating Gulf and China-U.S. tensions.

Premarket losses spread across chips and growth stocks

As reported by Reuters, selling pressure intensifies in premarket trading after a strong run that had pushed Wall Street's main indexes to record highs, with investors retreating from crowded semiconductor positions as concerns over AI-related spending resurface.

Chip stocks are broadly lower, extending the previous session's losses. SanDisk, Western Digital, Seagate Technology and Micron Technology are down between 4.6% and 6.5% in premarket trading, while the Philadelphia SE Semiconductor index hit a nearly two-month low on Thursday and is set for its worst week since March 2025.

Netflix is also weighing on sentiment after forecasting third-quarter revenue and earnings below Wall Street expectations. Its shares fall 9.4%, while Intuitive Surgical drops 10.8% even after the medical device maker tops Wall Street estimates for second-quarter profit and revenue on strong demand for its surgical systems.

At 4:55 a.m. ET, Dow E-minis are down 352 points, or 0.67%, S&P 500 E-minis are down 78.25 points, or 1.03%, and Nasdaq 100 E-minis are down 598.25 points, or 2.05%. The renewed volatility also pushes the CBOE Volatility Index up 1.8 points to 18.53, a more-than-one-week high.

Geopolitical risks add to weekly market pressure

Thursday's session had already set a weaker tone, with losses in chipmakers dragging the broader market lower. The main indexes are also on track for weekly declines, despite an initially upbeat start to the second-quarter earnings season from major banks and benign inflation data earlier in the week.

Investors are also tracking rising geopolitical tension in the Gulf. Iran says on Friday it has launched fresh attacks on U.S. facilities in the Gulf after a sixth straight night of U.S. strikes on Iranian military targets, escalating concerns after the breakdown of a ceasefire reached last month and renewing worries over energy flows through the Strait of Hormuz.

In parallel, fresh accusations by U.S. President Donald Trump that China meddled in U.S. elections risk complicating a fragile truce with Chinese leader Xi Jinping. The dispute adds another layer of uncertainty ahead of a planned summit in Washington in two months.

Our earlier coverage of the slide in U.S. chip and AI-linked stocks explained how investors began unwinding crowded semiconductor and momentum positions as doubts grew over AI-driven valuations. We also noted that even strong results and major expansion plans from Taiwan Semiconductor Manufacturing Company failed to lift sentiment, while higher oil prices and U.S.-Iran tensions added to inflation and broader market risk concerns.

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