Taiwan Semiconductor Manufacturing Co. triggered a chip sector sell-off after the company announced an increased spending forecast. Nasdaq-100 futures dropped as much as 2% in premarket trading this morning following yesterday's session that saw chipmakers including Arm Holdings, Micron Technology and Advanced Micro Devices lose more than 5%. The VanEck Semiconductor ETF has dropped nearly 7% this week. The sell-off reflected investor concerns about capital expenditure levels in the semiconductor industry amid broader technology sector weakness that also affected software stocks.
TSMC Spending Forecast Triggers Chip Sector Decline
Taiwan Semiconductor Manufacturing Co. sparked a sell-off in the chip sector after announcing an increased spending forecast. The VanEck Semiconductor ETF (SMH) has dropped nearly 7% this week, putting it on track for one of its sharpest weekly declines in the past year. Chipmakers including Arm Holdings, Micron Technology and Advanced Micro Devices all lost more than 5% in yesterday's session. Tech's troubles extended beyond hardware as Alphabet shares dropped 4% following a report that the Google parent is delaying the release of its artificial intelligence model. The blue-chip Dow Jones Industrial Average sidestepped some of the market turmoil, thanks in part to UnitedHealth's post-earnings gain. All three major indexes are on track for negative weeks.
Netflix Stock Drops 11% on Disappointing Earnings Guidance
Netflix's second-quarter results were roughly in line with Wall Street's expectations, but disappointing earnings guidance from the streamer sent the stock down more than 11% in extended trading. Netflix said it would reduce the frequency of its "What We Watched" engagement reports. The metric has been in the spotlight following reports that viewership for the streamer's series drops after the first season. The company described engagement with its content as "healthy." Netflix raised subscription prices earlier this year and said the results of those hikes were in line with its expectations and past raises.
Trump Approval Rating Falls as Economic Pessimism Rises
Americans are increasingly pessimistic about the economy and are blaming President Donald Trump, according to CNBC's latest All-America Economic Survey. Roughly 60% of those surveyed said they had a bad view of the current state of the economy and the outlook for the future — the highest such reading since late 2023. About the same percentage said they disapprove of how Trump has handled the economy. The president's net approval rating stands at 40%, according to the poll. The survey also found that voters would more likely support a democratic socialist candidate than a Trump-endorsed candidate or candidate tied to the Make America Great Again movement. Socialism is still less popular than capitalism in the U.S., according to the poll.
Chinese Gangs Use Tap-to-Pay Fraud to Target Retailers
Police say that digital forms of theft such as tap-to-pay schemes and app fraud are allowing Chinese gangs to rake in as much as $1 billion a year. Rather than steal from store shelves, the fraudsters are using stolen credit cards and digital payment systems to purchase gift cards. Experts say the thieves target retailers because they don't have the same amount of security as banks, but their systems still house sensitive information. While there's no clear data on how much retailers lose from this type of crime, CNBC found around a dozen criminal cases in the U.S. tied to digital forms of retail theft.
SEC Expected to Join CFTC in Prediction Market Oversight
Event contract exchanges have long been regulated by the Commodity Futures Trading Commission. Legal experts are now expecting its sibling agency, the U.S. Securities and Exchange Commission, to play a role in prediction market oversight as platforms such as Kalshi and Polymarket boom. A Polymarket spokesperson told CNBC that it has engaged with both the CFTC and SEC on definitional frameworks for prediction market offerings. Kalshi declined to comment. The CFTC is investigating Trump's longtime teleprompter operator after he allegedly made Kalshi bets on statements from the president. White House Press Secretary Karoline Leavitt said the teleprompter operator had been placed on unpaid leave.
FAQ
What caused the chip stock sell-off this week?
Taiwan Semiconductor Manufacturing Co. announced an increased spending forecast, which triggered concerns about capital expenditure levels in the semiconductor industry. This led to a nearly 7% decline in the VanEck Semiconductor ETF this week, with major chipmakers including Arm Holdings, Micron Technology and Advanced Micro Devices losing more than 5% in a single session.
Why did Netflix stock drop in extended trading?
Netflix's second-quarter results were roughly in line with Wall Street's expectations, but the company provided disappointing earnings guidance that sent the stock down more than 11% in extended trading. The streaming platform also announced it would reduce the frequency of its "What We Watched" engagement reports.
What does the CNBC All-America Economic Survey show about Trump's approval?
The survey found that roughly 60% of Americans have a bad view of the current state of the economy and the outlook for the future — the highest such reading since late 2023. About the same percentage said they disapprove of how Trump has handled the economy, with the president's net approval rating standing at 40%.
