US equity markets are set for a lower open on Friday, weighed down by a persistent sell-off in the semiconductor sector and fresh disappointment from Netflix.

The streaming giant delivered a quarter that fell short of investor expectations, adding to the headwinds facing technology shares.

The semiconductor complex remains under significant pressure, with chip stocks continuing their downward trajectory.

This sector-specific weakness is broadening into a wider market drag, as investors reassess valuations in the face of mixed corporate results.

The Nasdaq Composite and S&P 500 are both facing selling pressure, reflecting a cautious sentiment among traders.

Netflix’s underwhelming performance highlights the challenges facing growth stocks in the current environment.

Despite prior focus on subscriber growth and ad-tier traction, the latest results have failed to provide the catalyst needed to reverse the negative momentum.