US futures slide as Netflix guidance disappoints and Iran tensions ignite oil prices
Investors weigh AI spending sustainability concerns against geopolitical escalation, while Netflix shares drop in after-hours trading and SpaceX faces technical setbacks.
US stock index futures traded lower on Friday, reflecting a convergence of corporate earnings disappointment and geopolitical instability. The Dow Jones Industrial Average futures fell 336 points, or 0.6%, while the S&P 500 futures dropped 66 points, or 0.9%. The Nasdaq 100 futures were down 488 points, or 1.7%, continuing a downward trend from Thursday’s decline on Wall Street.
Market sentiment was heavily influenced by concerns regarding the financial sustainability of artificial intelligence spending. Analysts at Vital Knowledge noted that worries about the absence of free cash flow for hyperscalers and potential data centre overcapacity were dominating investor focus, outweighing geopolitical developments. Technology shares, particularly memory-chip manufacturers, remained under pressure as questions persisted about the reliance on capital markets to fund rising capital expenditure.
Netflix shares fell more than 8% in after-hours trading following the release of third-quarter guidance that missed analyst expectations. The streaming giant forecast earnings per share of $0.82 and revenue of $12.86 billion, both below consensus estimates. Despite the softer outlook, Netflix stated that its financial performance remains solid and it is on track to meet its objectives for the year. The company also announced it will shift towards publishing viewing-hours data annually starting in January 2027, moving away from quarterly subscriber metrics.
Geopolitical tensions escalated as US Central Command confirmed a sixth consecutive night of strikes on Iranian military targets. The renewed conflict has raised concerns over shipping through the Strait of Hormuz, leading to higher oil prices. Brent crude rose 0.7% to $84.81 a barrel, while US West Texas Intermediate crude gained 1.0% to $79.76. Iranian media reported that the latest attacks damaged civilian infrastructure, including bridges and a railway station.
In the technology sector, SpaceX shares dropped more than 4% in extended trading after a Starship test flight was aborted due to engine ignition failures. The stock closed below its $135 initial public offering price for the first time, having opened at $150 per share on 11 June 2026. Meanwhile, investors prepared for another batch of corporate earnings, with Travelers, Truist Financial, Fifth Third Bancorp, and Regions Financial scheduled to release results before the market opened.
