TradingKey - On July 17 Eastern Time, in U.S. premarket trading, the three major stock index futures fell sharply across the board. As of press time, Nasdaq 100 index futures fell 1.67%, S&P 500 index futures fell 0.79%, and Dow Jones index futures fell 0.52%.
[Source: CME Group]
In commodities, WTI crude oil futures rose 2.19% to $80.6/barrel, and Brent crude oil futures rose 1.9% to $85.89/barrel. Gold and silver prices continued to hover at low levels, with spot gold ( XAUUSD) trading near $3,993 per ounce; spot silver ( XAGUSD) trading near $55.43 per ounce.
In the crypto market, Bitcoin is currently trading near $63,232; Ethereum is currently trading near $1,840.
Market Movers
The storage chip sector continued its panic selling pre-market. As of writing, SanDisk ( SNDK) fell 2.6%, Western Digital ( WDC) fell over 4%, Seagate Technology ( STX) fell over 3%, Micron Technology ( MU) fell nearly 3%.
The optical communications sector continued its decline, with Corning ( GLW) fell over 4%, Lumentum ( LITE ), Marvell Technology ( MRVL) fell over 3%.
Large-cap tech stocks weakened almost across the board pre-market. SpaceX ( SPCX) fell over 4% after the company called off the 13th test flight of its Starship; Nvidia ( NVDA ), Meta ( META ), Amazon ( AMZN ), Tesla ( TSLA ), Microsoft ( MSFT ), Google Class A ( GOOGL) fell over 1%.
Market News
Netflix fell over 11% premarket as Q3 revenue guidance missed expectations. Netflix ( NFLX) reported second-quarter financial results after the bell yesterday. Revenue reached $12.56 billion, up 13% year-on-year, slightly below the market estimate of $12.59 billion; earnings per share stood at $0.80, in line with expectations. The company expects third-quarter revenue to grow by 11.7% year-on-year, marking its lowest quarterly year-on-year growth rate since late 2023; full-year revenue guidance was narrowed to $51 billion to $51.4 billion. Netflix shares have fallen nearly 20% year-to-date and are down approximately 40% from their all-time high.
Intuitive Surgical fell nearly 10% premarket despite beating earnings expectations. Medical technology company Intuitive Surgical ( ISRG) reported Q2 revenue of $2.89 billion, beating expectations by 2.6%; adjusted earnings per share was $2.80, beating expectations by 11.9%. However, several major medical institutions reported a decline in surgical volumes, compounded by a Class II recall issued for certain components of the da Vinci surgical system.
Key Events Preview
Eastern Time | Event |
Friday, July 17, 9:15 | US June Industrial Production |
Friday, July 17, 10:00 | US July Michigan Consumer Sentiment Index |
Panic selling in the chip sector has swept the market for three consecutive days, with losses in memory stocks continuing to widen. Netflix's Q3 guidance fell short of expectations, further dampening tech sentiment, as the market reassesses whether the AI narrative can continue to support high tech valuations. If US stocks extend their pre-market decline tonight, South Korean markets, which have been closed for two days, will face catch-up downward pressure when they open next Monday.
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