Why did the S&P 500 and Nasdaq fall?

Due to disappointing guidance from Netflix and continued weakness in semiconductor stocks after TSMC raised its capex forecast.

How did Netflix stock react?

Netflix shares fell over 5% after its revenue guidance missed analyst expectations.

What is TSMC's role in the chip stock decline?

TSMC raised its 2026 capital expenditure forecast, sparking oversupply fears and pressuring semiconductor stocks.

Were other stocks affected besides Netflix and chips?

Yes, Apple, Meta, and General Electric also declined amid the broad selloff.

S&P 500, Nasdaq Slide as Netflix Guidance Disappoints, Chip Stocks Fall

The S&P 500 and Nasdaq declined sharply on Friday as Netflix's disappointing guidance weighed on tech sentiment and chip stocks continued to slide amid TSMC's higher capex outlook. Major indices ended the week lower.

The S&P 500 and Nasdaq Composite fell sharply on Friday, dragged down by disappointing guidance from Netflix (NFLX) and continued weakness in semiconductor stocks. The selloff erased gains from earlier in the week.

Reasons for the Decline

Netflix Guidance Disappoints

Netflix reported quarterly results that missed analyst expectations, and its revenue guidance for the current quarter came in below consensus. The stock dropped over 5% in Friday's session.

Chip Stocks Under Pressure

Semiconductor stocks extended losses after Taiwan Semiconductor Manufacturing (TSM) raised its 2026 capital expenditure forecast, fueling concerns about oversupply. Shares of NVIDIA, AMD, and Intel all declined.

Stocks in Focus

Netflix (NFLX): Fell on weak guidance.
Apple (AAPL): Declined amid broad tech selloff.
Meta (META): Lower on negative sentiment.
General Electric (GE): Also fell despite no direct sector link.

Broader Context

The decline comes after a volatile week marked by rising bond yields and hawkish Fed comments. The S&P 500 lost about 1.5% for the week.

What This Means for Investors

The market's reaction highlights continued sensitivity to corporate earnings and guidance, especially in the tech and semiconductor sectors. Investors should watch upcoming inflation data and earnings reports for further direction.