U.S. stock index futures fell sharply in Friday's premarket session as a deepening sell-off in semiconductor stocks rippled across global markets, compounded by disappointing guidance from Netflix and renewed Middle East tensions that kept crude oil elevated.
Dow Jones Industrial Average futures slipped more than 300 points, or 0.66%, S&P 500 futures lost 0.85%, while Nasdaq-100 futures dropped 1.6% as tech stocks came under scrutiny. The moves came after the U.S. military completed its sixth consecutive night of strikes against Iran, hitting dozens of military targets, including logistics infrastructure and maritime capabilities.
The rout builds on Thursday's losses, when a decline in chipmakers dragged the broader market lower, sending the S&P 500 down 0.5%, the Nasdaq Composite down 1.5% and the Dow 105.67 points, or 0.2%, lower. The semiconductor selloff has gone from profit-taking to position-clearing, dragging Asia toward its worst levels in months, while Brent's rebound above $85/bbl keeps the inflation-risk premium alive.
Premarket Snapshot — July 17, 2026
| Instrument | Level | Change |
|---|---|---|
| S&P 500 futures | 7,513 | -0.85% |
| Dow futures | 52,440 | -0.66% |
| Nasdaq-100 futures | 28,740.75 | -1.66% |
| US 10-year yield | 4.525% | down 4.4 basis points |
| WTI crude (Aug) | $79.99 | +2.18% |
| Brent crude (Sep) | $85.81 | +1.88% |
| Gold futures | $3,999.20 | +0.18% |
| Dollar Index (DXY) | 100.81 | +0.05% |
| VIX | 18.16 | +8.55% |
| Bitcoin (USD) | $63,075.20 | -1.70% |
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For the week, Brent and U.S. crude futures were set to rise more than 10% each, marking their largest gains since April. The escalating standoff comes as the fragile truce reached last month has fractured, once again disrupting energy flows through the strategically vital Strait of Hormuz, which typically handles around 20% of the world's oil traffic. The commodity is also likely to find support also from the threat of Yemeni disruptions of oil flow through the Red Sea route.
US Stocks in Focus
Netflix dropped nearly 10% in premarket after its in-line results for the second quarter failed to impress investors, earning 80 cents per share on revenue of $12.56 billion, versus analyst expectations of 79 cents per share on revenue of $12.59 billion. The streaming giant's guided to second straight quarter of slowing sales growth.
Chip stocks, which remained under heavy pressure on Thursday after Taiwan Semiconductor's capex-driven sell-off, are poised to extend their losses , with Micron Technology, Advanced Micro Devices, Intel and Broadcom all were lower in premarket, while the VanEck Semiconductor ETF (SMH) slumped more than 2.5%. On Thursday, TSMC raised its 2026 capex forecast to between $60 billion and $64 billion in its latest earnings update on Thursday, up substantially from its previous $52 billion to $56 billion range.
On the earnings docket, Wall Street expects Travelers Companies (TRV), a Dow component, to post quarterly earnings of $5.35 per share on revenue of $10.99 billion before the opening bell, with shares up 0.62% to $340 in premarket. Traders may also react to earnings from Truist Financial, and Fifth Third Bancorp.
Asia Sells Off Hard
The Nikkei 225 Index plunged 4.03% to close at 64,141 on Friday, while the broader Topix Index fell 2.72% to 3,919, with both benchmarks finishing at their lowest levels in more than a month as a global selloff in semiconductor stocks accelerated amid mounting concerns over heavy AI-related spending and stretched valuations. Technology and AI-related shares led the declines in Japan, with Kioxia Holdings tumbling 16.1%, Tokyo Electron sliding 8.1%, SoftBank Group losing 9%, Advantest falling 7.2%, and Taiyo Yuden dropping 11.9%.
The Hang Seng in Hong Kong gave up 1.78% to 24,562, while the Shanghai Composite index lost 3.1% to 3,764, and Australia's S&P/ASX 200 declined 0.5% to 8,796.70. South Korean markets were closed, but shares in Taiwan fell 6.5% a day after TSMC announced it plans to spend an extra $100 billion on building fabrication plants in the U.S.
Data and Earnings Ahead
- 8:30 a.m. ET — June housing starts and building permits
- 8:30 a.m. ET — June import and export price indices
- 9:15 a.m. ET — June industrial production and capacity utilization
- 10:00 a.m. ET — July preliminary University of Michigan consumer sentiment
- Premarket earnings: Travelers (TRV), Truist Financial (TFC), Fifth Third Bancorp (FITB)
Fund manager Louis Navellier argues that a sustained move higher in equities likely requires greater clarity around Iran-related geopolitical risks and the potential inflationary impact of energy prices. Until those concerns ease, markets may remain vulnerable to bouts of volatility, even as the broader backdrop of solid economic data and resilient earnings remains constructive.
The setup heading into the next two weeks offers little room for complacency. The recent semiconductor selloff coincides with a critical stretch of earnings from AI heavyweights Alphabet, Microsoft, Amazon, and Meta. With valuations across the technology sector reflecting exceptionally high expectations, many stocks appear priced for near-perfect execution. As a result, even modest earnings misses, softer guidance, or signs of slowing AI-related spending could trigger further pressure across the AI-driven segment of the market.
