Nasdaq 100 and S&P500: Netflix Miss Hits Tech Stocks as Meme Rally Heats Up Today

Nasdaq Futures Slip as Netflix Weighs on Tech; Meme Stock Rally Lifts Speculative Names

U.S. stock futures held steady early Wednesday after the Dow closed at a new record, though the Nasdaq came under pressure following a weaker-than-expected earnings report from Netflix. S&P 500 futures edged up 0.1%, while Dow futures were flat. Nasdaq 100 futures slipped 0.1% as sentiment turned cautious ahead of more key tech earnings.

How Did Netflix Earnings Set the Tone for the Nasdaq?

Netflix shares dropped 7% in premarket trading after the streaming giant missed earnings estimates, reporting $5.87 per share versus $6.97 expected by analysts. While revenue was in line at $11.51 billion, a Brazilian tax dispute dented results. The report raised concerns over whether other megacap tech names will meet investor expectations, especially as Tesla prepares to report after the bell.

Which Companies Delivered Strong Results?

Intuitive Surgical led early gainers, jumping 17% after beating on both earnings and revenue. The company posted $2.40 in adjusted EPS on $2.51 billion in sales, outpacing forecasts.

Pegasystems rallied nearly 13% after its third-quarter results topped both earnings and revenue estimates.

Capital One added 4% after posting $5.95 per share in adjusted earnings, well ahead of the $4.37 consensus.

Hilton Worldwide rose 3% after delivering a solid beat, with EPS of $2.11 on $3.12 billion in revenue.

Western Alliance climbed 2% following strong Q3 results, while Barclays gained 5% after announcing a £500 million buyback and raising its return on equity forecast above 11%.

What’s Driving the Meme Stock Frenzy?

Speculative trading continued to grip the market. Beyond Meat surged another 90% in premarket action, building on Tuesday’s 140% jump after announcing a Walmart distribution deal and gaining entry into Roundhill’s Meme Stock ETF. Krispy Kreme also rallied 37% premarket following a 14% move Tuesday, driven by the same retail momentum.

What’s Next on the Calendar for Traders?

With tech earnings front and center, all eyes are on Tesla’s results due later today. Broader sentiment remains tied to corporate performance, especially among the “Magnificent Seven” tech leaders.

Looking ahead, Friday’s CPI report is the next major macro catalyst, especially as it stands alone due to the ongoing government shutdown suspending other data releases. The market continues to expect a Fed rate cut in late October, with another likely in December.

Short-Term Outlook: Neutral with Bullish Bias

Traders are closely watching tech earnings for confirmation of continued AI-driven growth. While Netflix’s miss casts some doubt, solid results from Intuitive Surgical and others suggest resilience. If Tesla and the rest of big tech deliver, bulls could regain control heading into the CPI release.

More Information in our Economic Calendar.