Nasdaq, Dow, S&P 500 Futures Slip As Chip Selloff Overshadows Strong Earnings Season: NFLX, SNDK, SPCX, MRVL Stocks In Focus

U.S. stock futures extended a decline into the overnight session late Thursday after all benchmark indexes closed lower amid a selloff in the technology sector, particularly among semiconductor names.

Nasdaq-100 futures fell 0.61%, Dow futures were down 0.41%, and S&P 500 futures declined 0.38% at 9:11 PM EDT.

All three benchmark indexes closed lower on Thursday amid growing concerns over AI sustainability. The Nasdaq Composite led the declines, tumbling nearly 400 points to close 1.47% lower. The S&P 500 was down 0.51%, while the Dow closed 0.20% lower.

U.S. markets bled amid rising concerns over ballooning capital expenditures from AI players after Taiwan Semiconductor Manufacturing (TSM) massively hiked its capital expenditures for 2026.

The company raised its 2026 capex forecast to between $60 billion and $64 billion in its latest earnings update on Thursday, up substantially from its previous $52 billion to $56 billion range.

However, many Wall Street analysts believe that the selloff is temporary. CEO and Chief Investment Officer of Singapore-based DeFiance Capital, Arthur Cheong, said in a post on X that this appeared to be a mid-cycle correction instead of a full-cycle top.

“Given all the recent information I'm leaning hard toward the recent correction in AI and Semi complex being mid cycle correction instead of full cycle top,” he said. “The positioning and leverage on AI and Semi names got too extreme and therefore get flushed heavily now and I expect market to recover strongly once the summer doldrums are over.”

The declines come at the start of a strong earnings season, with big banks kicking off the cycle earlier this week with solid results. On Thursday, TSM’s second-quarter print posted a beat on revenue and profit due to strong AI-driven demand, but shares slipped due to capex worries.

Unitedhealth Group Inc. (UNH) also posted Q2 earnings, topping estimates amid lower medical costs, while raising its earnings and cash flow outlook for 2026. Netflix Inc. (NFLX), however, posted disappointing results.

James E. Thorne, chief market strategist at Wellington-Altus Private Wealth, said in a post on X that the decline in stocks despite strong earnings results reflected “stretched valuation and geopolitical risk, and a growing consensus that earnings growth is near its peak,” adding that it was not a surprise that “the market didn’t reward the beat.”

On the geopolitical front, the U.S. has continued its attack on Iran for a sixth-consecutive day. The U.S. Central Command updated in a post on X: “At 2 p.m. ET today, U.S. forces began conducting a new wave of strikes against Iran for the sixth consecutive night to further degrade Iranian military capabilities.”

Media reports indicate that the U.S. struck several civilian and strategic locations on Thursday, including Sirik, a key city overseeing the Strait of Hormuz. Separately, Iranshahr Airport was also targeted, with local reports indicating damage to airport facilities.