US stock futures fall as tech sell-off drags Nasdaq lower
U.S. stock futures declined following a tech-led sell-off that saw the Nasdaq 100 drop 1.62%. Netflix and Intuitive Surgical fell sharply on earnings, while Coca-Cola rose despite a cyberattack. Analysts warn of high volatility this earnings season, and investors await key economic data including housing starts and industrial production.
*this image is generated using AI for illustrative purposes only.
U.S. stock futures declined on Friday, extending losses from the previous session as a sell-off in technology stocks weighed on market sentiment. The Nasdaq 100 index plunged by 1.62% on Thursday, with shares of Micron Technology Inc. and Advanced Micro Devices Inc. both falling by more than 5% each. The downturn follows a period of gains driven by cooling inflation data, though investors remain cautious about the Federal Reserve's next moves. President Donald Trump praised domestic economic progress in a primetime address, stating the U.S. is doing "great" with historic employment figures, even as bond yields held steady.
Market Performance and Futures
Major indices posted losses on Thursday, and futures pointed to a weaker open on Friday. The SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF were both lower in premarket trading. The SPY was down 0.94% at $743.70, while the QQQ declined by 1.99% to $691.92. The 10-year Treasury bond yielded 4.53%, and the two-year bond was at 4.12%. CME Group’s FedWatch tool indicates an 89.8% likelihood that the Federal Reserve will leave interest rates unchanged during its July meeting.
| Index | Performance (+/-) | Value |
|---|---|---|
| Dow Jones | -0.20% | 52,552.97 |
| S&P 500 | -0.51% | 7,533.77 |
| Nasdaq Composite | -1.47% | 25,881.95 |
| Russell 2000 | -0.057% | 2,974.57 |
Stocks in Focus
Several major companies moved significantly on earnings and corporate news. Netflix Inc. tumbled 8.92% in premarket trading after reporting mixed second-quarter results and issuing weak guidance for the third quarter. Intuitive Surgical Inc. dropped 9.28% despite posting better-than-expected second-quarter results. Nebius Group NV declined 4.09% as investors assessed its new asset-light data center partnership model. Conversely, Coca-Cola Co. rose 0.68% despite disclosing a ransomware attack on its Fairlife subsidiary, having activated its response plan. CoreWeave Inc. fell 3.98% after CEO Michael Intrator and CFO Nitin Agrawal sold significant amounts of stock.
Analyst Insights and Economic Data
Scott Wren, Senior Global Market Strategist at Wells Fargo Investment Institute, highlighted a positive forward outlook for the economy but cautioned that the current earnings season faces exceptionally high stakes. He noted that simply beating consensus estimates may no longer be enough to drive positive stock performance due to elevated "whisper numbers." Wren expects heightened volatility and advised that downside volatility might provide attractive entry points in favored sectors like Technology and Financials. Investors are awaiting June’s Housing Starts and Import Prices data, along with Industrial Production and the preliminary University of Michigan Consumer Survey data.
Global Markets and Commodities
Asian markets closed mostly lower on Friday, except for India’s Nifty 50 index. European markets were also mostly lower in early trade. In commodities, Crude Oil WTI futures fell 0.46% to $79.31 per barrel, while Gold Spot US Dollar rose 0.40% to $3,992.39 per ounce. Bitcoin was trading 1.84% lower at $62,737.56 per coin.
Will the current sell-off in technology stocks persist if upcoming earnings fail to meet elevated 'whisper numbers'?
How might the Federal Reserve's July decision on interest rates impact the recent volatility in the Nasdaq 100?
Could the weakness in Netflix and Intuitive Surgical signal a broader shift in investor sentiment toward high-growth stocks?
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