On Friday, the Nasdaq fell more than 2% after investors’ lackluster reaction to Netflix’s earnings further exacerbated concerns about the tech giant’s big earnings next week.
The tech-heavy Nasdaq Composite Index fell 2.1% to end at 15,282.01, with Netflix down 9.1% and artificial intelligence leader Nvidia down 10%.
The Dow Jones Industrial Average rose 0.6% to 37,986.40, while the S&P 500 index fell 0.9% to 4,967.23.
Netflix reported a profit of $2.3 billion, beating revenue expectations due to a surge in subscribers. The decline appears to be related to comments about the current quarter that suggest growth is slowing.
The results come ahead of next week’s reports from other major technology companies, including Google parent Alphabet and Microsoft.
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“Netflix’s response is causing some confusion about the mega-stock’s ability to meet expectations,” said Patrick O’Hare, an analyst at Briefing.com, adding that earlier in the week Taiwan Semiconductor Manufacturing Co. cited pessimistic comments from others as a contributing factor. Chip stocks performed poorly on Friday.
It’s been a tough week for stocks, with traders saying the U.S. central bank will hold off on cutting interest rates, partly due to concerns over the situation in the Middle East and changing expectations about U.S. monetary policy.
Among other companies reporting results, American Express rose 6.2% after reporting a 34% increase in quarterly profit to $2.4 billion.
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Tesla shares fell 1.9% after a recall of about 4,000 Cybertrucks due to poor acceleration.
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