Nasdaq in Freefall: Chip Rout Wipes Out Gains, Netflix Warns of Slowdown

The Nasdaq composite index fell again on Wednesday, extending a losing streak driven by a deepening slump in semiconductor stocks. The technology-heavy index dropped over 2%, erasing its gains for the year as investors fled chip makers. The sell-off accelerated after several major chip companies reported weak demand and issued cautious forecasts. Analysts pointed to slowing global sales and inventory gluts as key factors behind the rout. Adding to the market’s pain, Netflix shares plunged more than 8% after the streaming giant warned of slower subscriber growth in the coming quarter. The company said it expects a temporary dip as it cracks down on password sharing and adjusts its ad-supported tier. The dual shocks from chips and streaming have raised fears that the broader tech rally may be losing steam.