US markets undermined by jitters over tech profits
The Nasdaq sank more than two percent on Friday following a poor investor response to Netflix earnings that exacerbated worries over next week's deluge of earnings from tech giants. The Nasdaq Composite Index finished down 2.1 percent at 15,282, with Netflix sinking 9.1 percent and artificial intelligence leader Nvidia losing 10 percent. The Dow Jones Industrial Average gained 0.6 percent to 37,986, and the S&P 500 declined 0.9 percent to 4,967. Netflix reported a profit of US$2.3 billion, topping earnings expectations on a jump in subscribers. The drop appeared to be tied to commentary about the current quarter which suggested growth was moderating. The results come ahead of reports next week from other key tech names, including Google parent Alphabet and Microsoft. "The way Netflix has responded has created some consternation about the mega stocks' ability to live up to expectations," said Briefing.com analyst Patrick O'Hare, who cited downcast comments from Taiwan Semiconductor Manufacturing Company earlier in the week as a driver of Friday's poor showing by chip stocks. Stocks have had a rough week due in part to unease over the Middle East and shifting expectations on US monetary policy, with traders betting the US central bank will delay cutting interest rates. Among other companies reporting results, American Express jumped 6.2 percent after reporting a 34 percent increase in quarterly profits to US$2.4 billion. Tesla dropped 1.9 percent following the recall of nearly 4,000 Cybertrucks over an acceleration defect. (AFP)