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Global tech stocks fall as chip sell-off deepens; Burberry sales boosted by gen Z shoppers – business live
Global technology shares fell on Friday as a sell-off in semiconductor stocks deepened, dragging Asian markets sharply lower and setting a downbeat tone for European and US trading. The declines were compounded by a weak earnings report from Netflix, whose shares dropped more than 8% in after-hours trading after the company forecast its smallest year-on-year quarterly revenue growth in over two years, fuelling investor concerns about competition and slowing momentum in tech.
Elsewhere, the UK government's decision to nationalise British Steel drew a sharp rebuke from China, whose commerce ministry said it was "strongly dissatisfied" and warned the move damaged Chinese investor confidence in Britain; the firm had been under Jingye's ownership before the state stepped in to protect production at Scunthorpe. Separately, the Port of Dover braced for one of its busiest weekends of the year as post-Brexit EU border checks threatened to cause long delays for holidaymakers, while Burberry reported a sales boost driven by younger, gen Z shoppers.
In short
- Chip stocks slide, pulling down global tech shares and Asian markets
- Netflix shares sink over 8% on weak revenue growth forecast
- China objects to British Steel nationalisation; Dover braces for holiday traffic
Explained simply
Technology stocks are watched closely by investors worldwide because the sector is seen as a driver of economic growth and innovation. Semiconductor companies, which make the computer chips used in everything from smartphones to data centres, are particularly important because their performance indicates whether demand for new technology is strong. When these stocks fall sharply, it worries investors that the broader economy may be slowing or that growth expectations have been too optimistic.
Netflix, the streaming service, is closely watched by investors as a key indicator of health in the technology and entertainment sectors. Slower revenue growth from such a large, established company suggests that firms may be struggling to meet investor expectations, which heightens concern about the entire technology sector and contributes to the broader market sell-off in tech stocks.
Beyond technology, the government's recent decision to take control of British Steel from its Chinese owner has drawn international criticism and reflects tensions around protecting strategic industries. Meanwhile, consumer companies like Burberry are finding success by adapting their offerings to appeal to younger shoppers, suggesting that shifting consumer preferences are reshaping different parts of the economy.
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