International markets update:
Global markets experienced a downturn as major tech companies delivered disappointing news, overshadowing an otherwise solid earnings season and compounded by rising geopolitical tensions in the Middle East.
- U.S. markets closed in negative territory, with all three major indexes posting losses, primarily driven by significant declines in tech giants Netflix and Alphabet despite a high percentage of S&P 500 companies topping estimates.
- Netflix shares plummeted over 8% in after-hours trading following a disappointing earnings forecast and a strategic decision to reduce the frequency of engagement metric reports, shifting focus to core financial performance.
- Alphabet’s stock fell 4% amid reports that its latest Gemini 3.5 Pro AI model is several months behind schedule, with internal expectations for its coding capabilities reportedly falling short.
- Geopolitical concerns intensified as Iran threatened severe retaliation, including ‘crushing’ key Middle East targets, if the U.S. targets Iranian infrastructure, further vowing to prevent American interference in the Strait of Hormuz.
- SpaceX faced a rapid surge in short-selling activity, with bearish bets now representing nearly one-third of its public float, as the company’s stock struggles and recently dipped below its $135 IPO price.
- Asia markets mirrored the negative global trend, trading lower on Friday, with technology stocks in Japan notably contributing to the widespread sell-off across the region.
Stock Market News summarised for the Wall Street Investors Club community.