Dow drops, Netflix beats estimates, Nvidia rebounds

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Broad sell-off
The Dow Jones Industrial Average dropped more than 500 points as investors trimmed positions in technology stocks and booked profits in other sectors. The S&P 500 and the Nasdaq Composite also declined, with Alphabet and Apple among the Big Tech names that fell on Thursday. Even the small cap-focused Russell 2000, up 3.5% in the last five trading days on hopes of interest rate cuts, lost 1.9%. The yield on the 10-year Treasury climbed, while U.S. oil prices inched lower.

Netflix beats
Netflix‘s second-quarter earnings beat estimates as it solidified its dominance in the streaming market. The company saw a 34% growth in ad-supported memberships and a 16.5% increase in global paid memberships to 278 million in the reported quarter. This growth, coupled with a crackdown on password sharing, boosted revenue by 17% to $9.6 billion. Netflix raised its full-year revenue growth forecast to 14%-15% from 13% to 15%. Net income rose to $2.15 billion, or $4.88 a share.

Nvidia rebounds
Nvidia shares rose 3% on Thursday, recovering from a 7% drop in the previous session as Donald Trump’s comments on Taiwan raised geopolitical concerns. Nvidia’s rise came after TSMC said demand remained high while supply was constrained for high-end AI chips, which TSMC manufactures for Nvidia. The semiconductor sector had its worst day since 2020 on Wednesday, with AMD, Arm, Broadcom, and Qualcomm also declining. “While there is rising concern over geopolitical tension given the upcoming US presidential election, TSMC mentioned that it would continue its overseas expansion to mitigate the risks,” Citi analyst Laura Chen wrote in a note on Thursday. 

Online sale record
Amazon‘s Prime Day generated a record $14.2 billion in U.S. online spending, an 11% increase year on year, according to Adobe Analytics. Back-to-school shopping and consumer demand for new electronics drove the surge, contrasting with last year’s inflation-weary shoppers’ focus on household essentials. Amazon highlighted the role of its AI shopping assistant, Rufus, in facilitating customer browsing.

Asia markets slide
Markets in the Asia-Pacific region tracked Wall Street losses amid rising trade tensions. Japan’s Nikkei 225 slipped 0.4% after June inflation came in at 2.8%, unchanged from May. Hong Kong’s Hang Seng index dropped over 2% as energy stocks declined, while mainland China’s CSI 300 inched up 0.1%. South Korea’s Kospi and the Taiwan Weighted Index extended losses, with heavyweights Taiwan Semiconductor Manufacturing Company and Samsung Electronics falling 3.5% and nearly 3%,…