Midday trading saw a split between strong earnings-driven gains in parts of insurance and sharp declines across healthcare, streaming, semiconductors, and software, as investors weighed results, guidance signals, and company-specific headlines. Key movers included Travelers after a major quarterly beat, Netflix following an earnings-and-engagement update, and Intuitive Surgical after results triggered a double-digit selloff.
Key takeaways
- Travelers surged nearly 8% after a large second-quarter earnings and revenue beat, underscoring investor appetite for clear fundamental upside.
- Netflix fell more than 7% despite reporting results in line with expectations, reflecting disappointment over streaming engagement signals and a reduction in the frequency of “What We Watched” reports.
- Semiconductors extended weakness as the sector ETF headed toward a fifth straight losing session, with losses spread across major and smaller chip-linked names.
- Intuitive Surgical dropped more than 12% on a heavy reaction to its quarterly results, even as it maintained a full-year outlook for da Vinci procedure growth.
- Alphabet declined about 2% on a second straight down day after a report that it is months behind delivering its latest Gemini AI model.
What drove the biggest stock moves
Travelers jumped after earnings beat. The insurer rose nearly 8% following second-quarter results that beat expectations. Travelers reported earnings of $10.04 per share versus analyst expectations of $5.42 per share, alongside revenue of $11.53 billion that topped estimates.
The gain had a spillover effect across insurance stocks, lifting the iShares U.S. Insurance ETF and pulling several peers higher. Allstate and Hartford Insurance both climbed more than 2% in sympathy.
GSK slid on a drug development halt. U.S. shares of the biopharmaceutical company fell more than 2% after GSK said it would stop further development of its chronic cough treatment, camlipixant. The company cited mixed late-stage results and said the limited efficacy seen in aggregate data is unlikely to transform patient care.
Nebius advanced on new financing for AI infrastructure. Nebius Group gained more than 4% after announcing $775 million in debt financing. The financing is backed by the company’s graphics processing units infrastructure and contracted cash flows from an investment-grade customer agreement, with proceeds earmarked for global expansion of its AI cloud platform.
Netflix fell on engagement-related follow-through. Netflix dropped more than 7% after reporting second-quarter results that landed in line with expectations. The company earned 80 cents per share on revenue of $12.56 billion, while analysts expected 79 cents on revenue of $12.59 billion. Investors appeared less satisfied with operational guidance around its investor reporting cadence, as Netflix said it will cut back how often it releases its “What We Watched” reports.
Intuitive Surgical tumbled despite holding its outlook. Intuitive Surgical shares fell more than 12% after posting second-quarter results. The company reported adjusted earnings of $2.80 per share on revenue of $2.89 billion, compared with analyst expectations of $2.50 per share on revenue of $2.82 billion. Despite the decline, Intuitive Surgical maintained its full-year outlook for procedures using its da Vinci robotic system, projecting growth around 14%.
Alphabet slipped as investors processed Gemini delivery concerns. Alphabet fell about 2% for a second consecutive session after Bloomberg reported that the company is months behind delivering its latest Gemini AI model. Alphabet dropped nearly 4.5% on the earlier day following that report.
Semiconductors and software dragged broader tech sentiment
Semiconductors led to weakness across tech, with the iShares Semiconductor ETF sliding nearly 1% and on pace for its fifth losing day in six sessions, along with its worst week since April 2025. Taiwan Semiconductor Manufacturing fell nearly 2%, Astera Labs dropped 4%, and Credo Technology slid more than 3%.
Software stocks also weighed on the market. The iShares Expanded Tech-Software Sector ETF fell more than 1% and was set for a sixth week lower in seven. Synopsys and Cadence Design Systems both dropped sharply, while Palantir Technologies and Microsoft each fell about 2%.
Other notable corporate developments and sector signals
SpaceX faced a launch setback. The stock fell more than 4% after SpaceX aborted a launch of its Starship mega rocket. In an update shared on X, CEO Elon Musk said some engines did not start, triggering an automatic launch abort, and the company indicated it would attempt another launch in the coming days.
Energy stocks rose on Iraq investment expectations. BP and ConocoPhillips gained roughly 1% after CNBC reported that the companies will announce new investments in Iraq on Friday. CNBC’s Brian Sullivan said people familiar with the matter indicated the investments would be in the billions of dollars, potentially reaching tens of billions, though details of individual commitments were not immediately available.
Alcoa slid even after beating quarterly expectations. Alcoa fell about 3% after its second-quarter results beat analyst expectations. The company earned $2.12 per share excluding certain items on revenue of $3.97 billion, versus forecasts of $2.06 per share on revenue of $3.94 billion, per LSEG. The move reflected a more cautious outlook, as Alcoa lowered its 2026 production outlook for alumina, used in aluminum smelting.
Fifth Third Bancorp slipped after a modest earnings miss. The regional bank fell about 2% after reporting a slight earnings miss in its second quarter. Fifth Third’s net interest income was reported as in line with expectations and up 48% year over year.
What investors will watch next
With sector weakness persisting in semiconductors and broader software, investors are likely to focus on whether additional quarterly results and guidance can stabilize expectations. In the near term, key catalysts include Friday’s planned announcements related to Iraq investments for BP and ConocoPhillips, alongside the next wave of earnings and company updates that could sharpen or soften current concerns across technology and healthcare.
