S&P 500, Nasdaq Slide Sharply As Netflix Guidance Disappoints And Chip Stocks Extend Losses — NFLX, GE, META, AAPL, SPCX In Focus

• The S&P 500 fell about 1.01%, the Nasdaq-100 dropped roughly 1.49%, and the Dow Jones Industrial Average edged 0.77% lower.
• Chipmakers remained under pressure following Taiwan Semiconductor’s capex hike earlier in the week, while healthcare and select earnings winners offered relative support.
• Netflix’s mixed earnings after market close on Thursday continued to weigh on the tech segment.

U.S. stock indexes finished lower on Friday, with the tech-heavy Nasdaq-100 leading declines as investors digested Netflix’s mixed second-quarter results and cautious forward outlook. Chipmakers remained under pressure following Taiwan Semiconductor’s capex hike earlier in the week, while healthcare and select earnings winners offered relative support.

The S&P 500 fell about 1.01%, the Nasdaq-100 dropped roughly 1.49%, and the Dow Jones Industrial Average edged 0.77% lower. The Russell 2000, which tracks stocks with small market capitalizations, fell 0.42%.

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) fell 0.99% and Invesco QQQ Trust (QQQ) ended Friday around 1.50% lower, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) lost 0.74%.

Meanwhile, the VanEck Semiconductor ETF (SMH) lost 2.18%, while the broader Vanguard Information Technology ETF (VGT) slipped about 1%, as big tech names including Nvidia (NVDA), Alphabet (GOOGL), and Broadcom (AVGO) extended losses. Netflix (NFLX) shares tumbled more than 7% after the bell on Thursday and continued to weigh on sentiment Friday.

Retail sentiment on Stocktwits for SPY fell to ‘bearish’ zones, while sentiment around QQQ rose to ‘extremely bullish’ levels, and DIA sentiment stuck to 'neutral’ territory.

US Market Drivers

Netflix reported second-quarter results with revenue of $12.56 billion (slightly below estimates) and EPS of $0.80 (a beat), but lowered Q3 guidance and narrowed its full-year 2026 revenue outlook after market close on Thursday. The company also announced it would reduce the frequency of its viewing-hours/engagement data releases starting in 2027, raising questions about growth momentum and subscriber engagement trends. Shares fell sharply in reaction, dragging the broader tech complex lower on Friday.

Semiconductor stocks came under renewed pressure as investors continued to digest Taiwan Semiconductor Manufacturing (TSM)’s higher 2026 capital expenditure guidance of $60–64 billion, up from $52–56 billion, despite strong underlying demand. Memory and related names, including Micron and Advanced Micro Devices, clocked losses. Nvidia and Broadcom fell in sympathy.

Healthcare provided a partial offset. UnitedHealth Group continued to hold gains from its strong Thursday report. GE Aerospace reported solid second-quarter results before the open on Friday, with aerospace demand remaining robust, adding to positive sentiment in industrials.

Oil prices surged, with crude prices up 4.4%, on Middle East escalation fears and U.S.-Iran tensions.

Trending Stocks To Watch

Netflix (NFLX): Q2 EPS beat but revenue miss, soft Q3 guidance, and reduced engagement reporting sent shares down 7% on Friday, highlighting concerns over subscriber trends and growth.

GE Aerospace (GE): Reported solid Q2 results with robust aerospace demand, providing a bright spot in industrials.

META Platforms (META): The stock fell as much as 6% intraday but pared gains following a report by The New York Times that the company is in early talks to lease computing power from its AI data centers to Anthropic in a potential deal worth up to $10 billion over two years.

SpaceX (SPCX): SpaceX is reportedly in talks with the Pentagon to supply billions of dollars' worth of data-center capacity for running AI models. Talks could collapse with no deal, people familiar with the matter told The Wall Street Journal.

Apple (AAPL): Apple overtook Nvidia as the most valuable company in the world in morning trade on Friday, touching a market capitalization of $4.88 trillion. Separately, Bloomberg reported that the company and the U.S. Justice Department are in early discussions to settle a 2024 lawsuit alleging that the iPhone maker violated antitrust laws.

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