Chip Selloff Deepens as Netflix Disappoints
By Juliegrace Brufke | Quincy News Correspondent
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Washington (Quincy News) — Market Recap
Stocks fell Thursday as a deepening semiconductor selloff overshadowed generally positive corporate earnings and economic data. The S&P 500 declined 0.51%, the Nasdaq dropped 1.47% and the Dow slipped 0.20%. Technology was the weakest S&P 500 sector, falling 1.8%, while semiconductor shares tumbled 4.3%.
The pressure continued Friday morning. U.S. stock futures moved lower as investors reconsidered the durability of the AI-driven rally, while Netflix shares fell nearly 10% in premarket trading after the company forecast third-quarter revenue and earnings below Wall Street expectations.
U.S.-Iran tensions also remain a risk for markets after Iran reported fresh attacks on American facilities in the Gulf following a sixth consecutive night of U.S. strikes on Iranian military targets. The escalation renewed concerns about energy flows through the Strait of Hormuz and the potential for higher oil prices to add to inflation.
Today’s Focus
The technology pullback comes despite a strong start to earnings season. Taiwan Semiconductor reported a 77% increase in quarterly profit, while several major banks delivered better-than-expected results earlier in the week. But even strong reports have struggled to reassure investors concerned about lofty semiconductor valuations and the enormous amount of money being committed to AI infrastructure.
Borrowing costs remain another pressure point for households. Freddie Mac said the average 30-year fixed mortgage rate rose to 6.55% this week, up from 6.49% the previous week. That remains below the 6.75% average recorded at the same point last year.
This week also brought Federal Reserve Chair Kevin Warsh’s first semiannual monetary policy testimony before Congress since taking over the role. Warsh appeared before the House Financial Services Committee on Tuesday and submitted the same remarks to the Senate Banking Committee on Wednesday. Investors are closely watching his comments for clues about how the Fed will balance inflation risks, elevated energy prices and signs of uneven economic growth.
Friday rounds out the week with reports on trade prices, residential construction, industrial production and consumer sentiment. Together, the releases will offer a fresh look at inflation pressures, housing demand, factory activity and how consumers are feeling about the economy.
ON THE SCHEDULE FOR FRIDAY, JULY 17, 2026
• 8:30 a.m. ET – June Import and Export Prices
• 8:30 a.m. ET – June New Residential Construction
• 9:15 a.m. ET – June Industrial Production and Capacity Utilization
• 10:00 a.m. ET – University of Michigan Consumer Sentiment (Preliminary, July)
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