Nasdaq 100: Netflix Drop Pressures Tech Stocks as Traders Await Tesla Forecast

Wall Street Slips as Netflix Miss Dampens Sentiment, Eyes Turn to Tesla

U.S. equities edged lower on Wednesday as weaker-than-expected guidance from Netflix weighed on sentiment during a high-stakes earnings season. With major indexes near record levels and valuations under pressure, investors showed caution ahead of upcoming reports from mega-cap tech companies.

At 14:30 GMT, the Dow Jones Industrial Average was down 123 points, or 0.26%, at 46,801.55. The S&P 500 slipped 0.26% to 6,717.71, while the Nasdaq Composite led declines, falling 0.60% to 22,817.04.

Which Sectors Held Up and Which Fell Behind?

Sector moves were mixed on the session. Consumer discretionary led losses, dropping 1.07%, followed by declines in technology (-0.54%), industrials (-0.63%), and communication services (-0.60%).

Financials also weakened, while defensive areas saw modest gains.

Health care climbed 1.01%, energy rose 0.85% as oil prices steadied, and consumer staples added 0.75%.

Real estate and materials posted slight gains, while utilities dipped marginally.

Which Stocks Made the Biggest Moves?

Netflix shares sank 7.8% after the company’s fourth-quarter revenue outlook underwhelmed, pressuring the broader tech space.

Texas Instruments also slumped 7.7% on soft revenue and earnings forecasts. Other chipmakers — including Microchip Technology, ON Semiconductor, and Analog Devices — fell between 2.3% and 4.5%, dragging the Philadelphia Semiconductor Index down nearly 1%.

On the positive side, Intuitive Surgical jumped 15.5% after a strong earnings beat. Amphenol gained 6.6% on upbeat forward guidance. In contrast, Mattel fell 3.8% after missing Wall Street’s expectations, and AT&T lost 3% despite posting stronger-than-forecast wireless subscriber additions.

Is Gold’s Pullback a Pause or a Warning?

Gold prices declined for a second session, falling 1.49% to $4,053.10 per ounce, following Tuesday’s steep 5.74% selloff — the worst in over a decade. UBS attributed the move to technical selling and profit-taking after gold futures hit a record $4,398 on Monday. While no broad-based or geopolitical driver was cited, the pullback came as momentum cooled and volatility increased.

Despite the drop, gold remains up over 50% for the year. UBS believes the underlying drivers — inflation, political uncertainty, and concerns over Federal Reserve independence — remain intact.

Gold mining stocks such as Newmont and Barrick fell more than 4%.

What’s Driving Market Caution?

So far, 87% of the 78 S&P 500 companies reporting have exceeded earnings estimates, according to LSEG. Still, concerns persist that stretched valuations require more than earnings beats.

Tesla’s post-close report will be the first from the “Magnificent Seven,” whose results may determine the near-term path of the S&P 500, given their outsized market weight.

With Friday’s core CPI expected at 3.1%, that data may serve as the Fed’s final inflation read before next week’s policy meeting. If heavyweight tech names underdeliver, markets could lean bearish in the short term.

More Information in our Economic Calendar.