Chip stock sell-off, Netflix earnings, Trump's approval rating and more in Morning Squawk
CNBC’s Morning Squawk reports tech weakness as Nasdaq-100 futures fall and the VanEck Semiconductor ETF (SMH) drops nearly 7% on the week. Taiwan Semiconductor’s higher spending forecast is cited for a chip sell-off. Netflix shares fall over 11% after guidance disappoints. The newsletter also cites a CNBC economic survey showing 60% pessimism and discusses retail theft and SEC/CFTC prediction-market oversight.
How this was made

The 30-second read
Why it matters
The most tradable company-specific catalysts are NFLX’s disappointing guidance (with a reported >11% extended drop) and the AI model delay report for Alphabet (reported -4%). The semis section links multiple chip-stock declines to a Taiwan Semiconductor spending-forecast increase.
Market read
Traders get same-day, catalyst-linked downside signals for semis (SMH, ARM, MU, AMD) and for NFLX guidance, plus a separate AI-timeline negative for Alphabet.
What to watch
The newsletter also notes Netflix engagement is described as healthy despite changing reporting frequency, which could soften the guidance impact if investors focus on underlying retention trends.
Background
Morning Squawk frames a risk-off start to the day, citing tech and semis weakness plus a Netflix guidance-driven selloff.
Ticker impact
Arm Holdings fell more than 5% in Thursday’s session as an increased spending forecast from Taiwan Semiconductor sparked a chip-sector sell-off.
Volatility likely elevated; follow-through depends on whether the forecast is interpreted as demand-positive or capex-negative.
The text explicitly links ARM’s >5% drop to the sector catalyst.
Micron Technology lost more than 5% in Thursday’s session as the chip sell-off followed Taiwan Semiconductor’s increased spending forecast.
Short-term pressure likely persists until investors reassess the spending forecast implications.
The article directly attributes MU’s decline to the same catalyst.
Advanced Micro Devices dropped more than 5% in Thursday’s session as the chip sector sold off after Taiwan Semiconductor’s increased spending forecast.
Downside bias near term; magnitude may track SMH/peer moves.
The article explicitly states AMD’s >5% loss occurred during the catalyst-driven sell-off.
Netflix shares fell more than 11% in extended trading after results were roughly in line but guidance disappointed.
Further downside risk in the next sessions until investors digest the guidance and engagement-metric change.
The article cites a specific, time-sensitive catalyst: disappointing earnings guidance and a >11% extended move.
Alphabet shares dropped 4% after a report said the company is delaying the release of its AI model.
Near-term weakness likely while the market re-prices AI delivery timelines.
The article provides a concrete same-day catalyst (AI model delay report) and a reported 4% drop.
Market effects
Semiconductor complex is under pressure, with SMH and multiple chip stocks down >5% on a Taiwan Semiconductor spending-forecast read-through.
Primarily US tech/semis sentiment spillover; no direct regional macro policy action described.
Taiwan Semiconductor’s spending forecast is used as the cross-border catalyst for global chip demand/capex expectations.
Counterpoint
The Taiwan Semiconductor spending forecast could be interpreted as capacity build that supports longer-term demand, so the initial sell-off may be overdone if fundamentals remain intact.
Key entities
- companyNetflix
Second-quarter results were roughly in line, but earnings guidance disappointed; stock fell more than 11% in extended trading.
- companyArm Holdings
Fell more than 5% in Thursday’s session as the chip sector sold off after Taiwan Semiconductor’s increased spending forecast.
- companyMicron Technology
Lost more than 5% in Thursday’s session in the same chip-sector sell-off.
- companyAdvanced Micro Devices
Dropped more than 5% in Thursday’s session as semis sold off on the Taiwan Semiconductor forecast catalyst.
- companyAlphabet
Shares dropped 4% after a report said it is delaying the release of its AI model.





