Dow futures plunge 360 points: 5 things to know before Wall Street opens

• Memory chip stocks (Micron, SanDisk, Western Digital, Seagate) fell 4.6% to 6.5% in premarket trading; the Philadelphia Semiconductor Index hit a near two-month low after dropping 4.3% Thursday, raising questions about AI infrastructure spending sustainability.
• Netflix fell 9.4% despite Q2 revenue rising 13% to $12.56 billion, as the market punished slowing growth and a narrower full-year sales outlook; Intuitive Surgical also sank 11% despite beating estimates.
• Geopolitical risks escalated with Iran launching fresh attacks on US Gulf facilities and President Trump accusing China of election interference, threatening a diplomatic thaw ahead of Xi Jinping's expected September visit.

Market Summary: Dow Futures Plunge on Tech Selloff and Earnings Concerns

Key Market Movements

U.S. stock futures declined sharply Friday morning, with Dow futures down 360 points (-0.67%), S&P 500 futures falling 1.03%, and Nasdaq 100 futures plunging 2.05%. The VIX volatility index climbed to 18.53, its highest level in over a week, signaling increased market anxiety.

Sector and Company Highlights

Semiconductors Under Pressure: Memory-chip stocks led the decline, with Micron, Western Digital, Seagate, and SanDisk dropping 4.6% to 6.5% in premarket trading. The Philadelphia Semiconductor Index fell 4.3% Thursday, reaching a near two-month low—its worst week since March 2025. Investors are questioning whether AI infrastructure spending can sustain current valuations after a record first-half rally.

Netflix Disappoints: Netflix shares tumbled 9.4% after releasing cautious guidance. While Q2 revenue rose 13% to $12.56 billion with operating income of $4.19 billion, Q3 revenue and EPS projections fell below estimates, with management narrowing full-year sales outlook.

Healthcare: Intuitive Surgical plunged 11% despite beating quarterly estimates, highlighting investor demand for stronger forward guidance.

Geopolitical Risks

U.S.-Iran Tensions: Fresh Iranian attacks on U.S. Gulf facilities following six consecutive nights of American strikes elevated oil prices and supply concerns through the Strait of Hormuz, potentially complicating U.S. inflation improvements.

China Relations: President Trump accused China of election interference—claims Beijing denied—threatening diplomatic progress ahead of President Xi's expected September Washington visit.

Market Implications

The broad risk-off sentiment suggests investors are rotating away from crowded technology trades and no longer rewarding growth alone after an extended rally.