Wall Street falls on deepening selloff in chip stocks, Netflix slumps10.6%, Nvidia tumbles 4%

US stock markets ended lower on Friday as investors continued to dump semiconductor shares amid valuation concerns, while a disappointing outlook from Netflix further dampened sentiment across the technology sector.

As of 12:53 p.m. Eastern Time, the S&P 500 fell 0.5%, the Dow Jones Industrial Average was down 0.3%, and the Nasdaq Composite fell 0.7%.

As of 10 a.m. Eastern Time, the S&P 500 dropped 0.8%, the Dow Jones Industrial Average was down 0.1%, and the Nasdaq Composite was 1.7% lower.

At the opening bell, the Dow Jones Industrial Average fell 126.5 points, or 0.24%, to 52,426.46. The S&P 500 fell 86.2 points, or 1.14%, to 7,447.52​, while the Nasdaq Composite dropped 469.7 points, or 1.81%, to 25,412.259.

Investor caution also intensified after Chinese AI startup Moonshot AI unveiled a new artificial intelligence model that analysts believe could compete with some of the most advanced systems developed by leading US AI companies.

The announcement follows the emergence of DeepSeek, another Chinese AI startup that introduced a low-cost AI model earlier in 2025, challenging established Western platforms such as ChatGPT and adding to concerns over rising global competition in artificial intelligence.

In the bond market, the yield on the benchmark 10-year US Treasury note eased to 4.52%, down from 4.57% in the previous session.

Key Stock Movers

Nvidia tumbled about 4%, slipping behind Apple in market capitalisation and losing its position as the world's most valuable listed company as the selloff in AI-linked chip stocks gathered pace.

Netflix plunged 10.6% after posting quarterly revenue of $12.6 billion, narrowly missing Wall Street expectations. The streaming giant also reported annual revenue growth of 13.4%, marking its slowest pace of expansion in nearly three years and disappointing investors.

SpaceX dropped 4.7% to $124.85 after cancelling a planned rocket launch. Company chief Elon Musk said engine issues triggered an automatic launch abort, weighing on investor sentiment following the firm's public listing.

Medical technology company Intuitive Surgical declined 11.1%, despite reporting quarterly results that exceeded analysts' estimates, as investors reacted cautiously to its outlook and broader weakness across growth stocks.

Bullion

Gold prices were flat on Friday, as escalating US-Iran tensions drove crude oil prices higher and fuelled inflation fears.

By 0932 a.m. EDT (1332 GMT), spot gold was unchanged at $3,970.35 per ounce. US gold futures for August delivery fell 0.5% to $3,973.10.

Among other metals, spot silver fell 0.8% to $55.05, platinum dropped 3.3% to $1,563.49, and palladium slipped 1.5% to $1,230.42.

Energy Market

Crude oil prices surged on Friday after military tensions between the United States and Iran intensified across the Gulf, heightening concerns over potential disruptions to global energy supplies.

Market sentiment turned sharply bullish as investors assessed the growing risk to key shipping routes. In addition to already restricted vessel movements through the Strait of Hormuz, fears mounted that the conflict could also threaten traffic through the Red Sea, raising the possibility of broader disruptions to international crude oil flows.

By 1158 GMT, Brent crude futures rose by $1.77, or 2.1%, to $86 a barrel. US West Texas Intermediate futures were up $1.91, or 2.4%, at $80.86.