U.S. equity futures are lower as the global semiconductor unwind deepens and Netflix’s outlook adds pressure to growth stocks. At 4:55 a.m. ET, S&P 500 futures were down 1.03%, Dow futures were down 0.67% and Nasdaq 100 futures were down 2.05%. Russell 2000 futures were down approximately 0.6%, suggesting broader risk aversion but substantially greater pressure on large-cap Technology and AI-linked momentum exposure.
U.S. equities declined Thursday as semiconductor weakness outweighed otherwise resilient earnings and economic data. The S&P 500 fell 0.5%, the Dow declined 0.2%, the Nasdaq dropped 1.5% and the Russell 2000 slipped 0.1%. Month-to-date performance now stands at Dow +0.45%, S&P 500 +0.46%, Nasdaq -1.27% and Russell 2000 -1.65%.
Market internals were mixed. NYSE breadth was positive at 1.25:1, consistent with the strength in defensive and rate-sensitive groups, while Nasdaq breadth was negative at 1.67:1. Total exchange volume reached 12.60B shares on the NYSE and 17.49B shares on the Nasdaq, excluding regional activity.
Treasury yields edged higher Thursday, with the 2-year yield up 1 basis point to 4.15%, the 10-year up 1 basis point to 4.56% and the 30-year unchanged at 5.09%. The DXY rose to 100.75, while the euro slipped to $1.1442, sterling fell to $1.3476 and the dollar strengthened to ¥162.39.
August WTI crude declined 0.67% Thursday to $79.07, but traded near $79.80 Friday morning as renewed U.S.-Iran attacks and threats to Red Sea shipping kept the geopolitical risk premium elevated. Brent and WTI are both headed for weekly gains of more than 11%. August gold fell 1.74% Thursday to $3,981.20, though spot gold recovered modestly to approximately $3,993 Friday morning. Higher oil prices and the resulting inflation and interest-rate risk have limited gold’s safe-haven response.
Thursday’s economic data showed continued resilience in consumption and employment. June retail sales rose 0.2%, while the control group used in GDP calculations increased 0.5%. Initial jobless claims fell to 208,000, the lowest level since May, prompting some economists to raise second-quarter GDP estimates toward a 2.4%–2.5% annualized pace. Housing remained the weak spot, with pending home sales falling 5.4% in June and July homebuilder sentiment declining to 34.
Friday’s calendar includes June import and export prices, housing starts and building permits at 8:30 a.m. ET, followed by industrial production and capacity utilization at 9:15 a.m. Preliminary July consumer sentiment is due at 10:00 a.m. ET. The reports will provide further evidence on imported inflation, manufacturing momentum and whether higher energy prices are beginning to affect household confidence.
Sector Highlights
The headline indexes masked a pronounced defensive rotation. Consumer Staples gained 2.90%, followed by Health Care +2.21%, Real Estate +2.10%, Energy +1.00%, Utilities +0.56%, Materials +0.47% and Financials +0.41%. Industrials rose 0.06%, while Consumer Discretionary declined 0.29%. Communication Services fell 2.84% and Technology lost 1.77%, reflecting the unwind in semiconductor, AI infrastructure and mega-cap growth exposure.
Information Technology
- SanDisk (SNDK), Western Digital (WDC), Seagate Technology (STX) and Micron Technology (MU) were down between 4.6% and 6.5% premarket as the semiconductor and memory-stock selloff extended into a second session. The Philadelphia Semiconductor Index is headed for its weakest week since March 2025.
- The selloff follows strong results from TSMC and higher guidance from ASML, suggesting investors are reducing exposure because of elevated valuations and doubts about returns on AI capital spending rather than an immediate deterioration in underlying demand.
Communication Services
- Netflix (NFLX -9.4% premarket) fell after projecting third-quarter revenue and earnings below Wall Street expectations. The reaction deepened concerns about slowing subscriber growth, competition for viewing time and the ability of advertising, live programming and price increases to sustain earnings momentum.
Health Care
- Intuitive Surgical (ISRG -10.8% premarket) declined despite beating second-quarter profit and revenue estimates on strong demand for its robotic surgical systems. The selloff suggests expectations and valuation had moved ahead of the operating results.
Industrials
- SpaceX (SPCX) fell approximately 3% in aftermarket trading after its Starship rocket aborted moments before liftoff when several booster engines failed to ignite. The company expects another launch attempt as early as next week after replacing two engines.
Financials
- Fifth Third Bancorp (FITB) and Regions Financial (RF) report before the open, concluding a busy week for bank earnings. Investors will focus on net interest income, deposit costs, credit quality and whether regional lenders are seeing the same trading and capital-markets benefits reported by larger banks.
Data sourced from FactSet Research Systems Inc.
Disclaimer: This article is for information purposes only and does not constitute investment advice.
