Stock market today: Nasdaq hammered by chips sell-off, Dow and S&P 500 fall after Netflix whiff

Stock market today: Nasdaq hammered by chips sell-off, Dow and S&P 500 fall after Netflix whiff US stocks declined on Friday, putting the major indexes on track for weekly losses, as the semiconductor sector continued to drag markets lower. The Dow Jones Industrial Average (^DJI) pared steeper losses to trade near the flat line, while the S&P 500 (^GSPC) fell roughly 0.7%. The Nasdaq Composite (^IXIC) shed around 1.5% following a downbeat day on Wall Street and the release of the world's most powerful open AI model. Chip stocks, as tracked by the PHLX Semiconductor Index (^SOX), tumbled by about 3% on Friday, entering a bear market after Asian stocks fell, with Japan's Nikkei 225 (^N225) falling 4%. The market's tech-driven rally from March lows has stalled as investors reassessed companies' spending on artificial intelligence, clouding optimism for the AI trade. Adding to AI jitters on Friday, Chinese AI startup Moonshot on Friday unveiled Kimi K3, a powerful open AI model that it says is the world's largest, rivaling Anthropic's frontier Fable model. Netflix stock (NFLX), meanwhile, declined by 7% after the company's third quarter revenue forecast disappointed the Street as the streaming giant battles a "dynamic and competitive" entertainment landscape. A few smaller banks, including Truist Financial Corporation (TFC) and Fifth Third Bancorp (FITB), round out the week's earnings docket, while the University of Michigan's preliminary consumer sentiment reading showed Americans started to feel better about the economy as gas prices eased.