Live Nasdaq Composite: Tech Stocks Plunge on Rising AI Costs and Netflix Guidance Miss

By Gerelyn Terzo Updated Jul 17, 2:21PM EDT · Published Jul 17, 9:51AM EDT

Quick Read

Rising AI costs rattled investors Friday, sending the Nasdaq down 2% and chip ETFs SOXX and SMH each tumbling 5%.
Netflix cratered 10% after Q2 revenue disappointed and Q3 guidance missed, while HSBC upgraded Apple to Buy with a $366 price target.
JPMorgan urges investors to buy the chip dip, citing a strong AI-driven cycle and tight semiconductor supplies running through 2028.
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Live Updates

Meta, Compute, and Anthropic Trade

Jul 17, 2026 at 2:21 PM EDT

Meta’s AI spending spree may be starting to pay off. Mark Zuckerberg’s company is reportedly in early talks to rent AI computing power to Anthropic in a deal worth up to $10 billion over two years, with monthly payments and exit rights for both sides. No deal is guaranteed, but the signal is important: Meta may not just be buying chips for its own models. It may be trying to become part of the AI infrastructure market itself, where compute is the product. The stock is down 2.7% on the day.

Weekly Loss

Jul 17, 2026 at 1:18 PM EDT

The markets are about to put a losing week in the books. Over the past five-day stretch, here are the results:

Nasdaq Composite: Down 2.29%

S&P 500: Down 1.08%

Dow Jones: Down 0.53%

Bucking the downward trend today, Micron Technology (Nasdaq; MU) is up 5% today, trimming its weekly loss to 8.5%.

JPMorgan: Buy the Chip Dip

Jul 17, 2026 at 9:51 AM EDT

JPMorgan believes the recent sell-off in chip stocks has been a blip, advising investors to “buy the chip stock dip” while pointing to a strong AI-powered cycle and tight supplies through 2028.

This article will be updated throughout the day, so check back often for more daily updates.

The market sell-off deepened Friday as tech stocks kept searching for a bottom. The Nasdaq Composite fell 1.8% as tech took the brunt of the pressure, while the S&P 500 lost 1.2%. The Dow Jones Industrial Average held up slightly better but still dropped 519 points, or 1%, as investors grew less willing to pay up for an AI buildout that keeps getting more expensive. Netflix (Nasdaq; NFLX) was a negative catalyst on the heels of its earnings print after investors snubbed management’s forecast.

The chip trade stayed in the penalty box, with the iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH) each down a steep 5% as selling carried into another session. Applied Materials (Nasdaq: AMAT) and Lam Research (Nasdaq: LRCX) were among the harder-hit names, a sign investors were cutting exposure across the AI supply chain. The mood was not helped by China’s Moonshot AI, which unveiled a new model it says narrows the gap with leading U.S. systems, adding another layer of competitive anxiety to an already crowded semiconductor trade.

Here’s a look at where things stand as of pre-morning trading:

Dow Jones Industrial Average: 52,347 Down 0.39%
Nasdaq Composite: 25,267 Down 2.42%
S&P 500: 7,434 Down 1.32%

Market Movers

Netflix (Nasdaq; NFLX) stock is getting punished, with shares down 10.5% after Q2 revenue came in a touch light and Q3 guidance missed Wall Street’s mark.

Apple (Nasdaq: AAPL) caught a fresh upgrade as HSBC moved the stock to Buy and lifted its price target to $366, calling the company an “operational turning point” story. HSBC argues Apple can sidestep the hyperscaler capex fight, with 2026 investment running at just 2.5% of sales versus 39% for the cloud giants.

Qualcomm (Nasdaq; QCOM) slid 3% with the chip tape under pressure, but the income story held steady. The company declared a $0.92 quarterly dividend, giving investors a cash-return reminder while the stock works through a rough session.

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About the Author Gerelyn Terzo →

Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.