Market Midday: Stocks Lower,  AI Spending Fears Mount, Netflix Shares Slide • 7/17/26

I'm Jill Schneider, CNBC. Stocks are falling in midday trading. Growing worries over AI spending pulling tech stocks lower, putting the major indexes on pace for losing week. The Dow is down 135 points. The S&P 500 lower by 37. The Nasdaq down 260 points about a percent. Troll prices Tony Wang says he's still bullish on the software trade. valuation for software has uh become a lot more attractive here. Um and so and I think that you know not all software companies are um you know positioned similarly. >> One of the day's biggest movers Netflix shares down nearly 9% after its latest earnings disappointed investors. TD Cowan internet and media analyst John Blackgeledge thinks the drop might have been a bit of an overreaction. >> I I do I mean it was definitely mixed but down over 11% pre-market. um when sentiment was weak going in, stock down 40% over the past 12 months pre-open, um it feel it feels uh a little overdone. >> With new Federal Reserve Chair Kevin Worsh in the seat, former Atlanta Fed President Dennis Lockhart tells CNBC he expects the next rate move to be a hike. Personally, I worry that the longer the committee goes without really attacking the inflation problem, uh, the more likely they'll have to be aggressive. And if they're aggressive, that means raising rates and and really pushing down on the demand side. >> Amazon owned Zuks has recalled software in more than 100 of its robo taxis over concerns of its vehicles failing to detect heavy smoke and driving into it. Zuks notified the Highway Traffic Safety Administration of the recall on July 8th, saying it became aware of the smoke detection issue following an incident last month. Jill Schneider, CNBC.