U.S. equity markets faced significant downward pressure today, marking their most pronounced drop in over three months. The S&P 500, Nasdaq, and Dow Jones Industrial Average all declined substantially, driven by elevated risk aversion among investors. Heightened geopolitical tension, particularly renewed tariff warnings issued by President Donald Trump concerning Greenland, intensified market unease, triggering a substantial sell-off that erased approximately $700 billion of combined market capitalization from leading stocks including Nvidia and Apple.
The Nasdaq Composite Index fell by 2.39% to close at 22,954.32 points. The S&P 500 Index declined 2.06%, settling at 6,796.86, while the Dow Jones Industrial Average dropped 1.76% to 48,488.59. This synchronized decline across benchmarks underscores the broad-based risk reduction posture among investors.
Several prominent stocks garnered heightened attention among retail traders and institutional investors during the session, reflecting varied corporate developments and sector-specific dynamics. These equities included Netflix Inc. (NASDAQ: NFLX), International Business Machines Corporation (NYSE: IBM), United Airlines Holdings, Inc. (NASDAQ: UAL), Block Inc. (NYSE: XYZ), and Strategy Inc. (MSTR).
Netflix (NFLX) Faces Pressure After Acquisition Strategy Revision
Shares of Netflix declined by 1.08%, closing at $87.05 after reaching an intraday peak of $89.90 and a low of $87.02. The stock remains within a 52-week trading range of $82.11 to $134.12. In extended trading, Netflix shares tumbled an additional 4.84%, trading at $82.84.
Netflix recently altered its approach to acquiring Warner Bros. Discovery's studio and streaming operations. The company shifted to an all-cash offer at a total valuation of $82.7 billion, moving away from its previously proposed mixed cash-and-stock bid and thereby excluding competing interests from Paramount. This revised acquisition proposal, set at $27.75 per share in cash, secured unanimous approval from Warner Bros. Discovery's board.
The scope of this acquisition includes film and television studios, the associated content library, and the HBO Max streaming platform. This strategic move grants Netflix control over prominent franchises such as "Game of Thrones," "Harry Potter," and various DC Comics superhero properties. Despite the strategic intent, the adjustment in offer structure contributed to downward share pressure during the trading day.
IBM Stock Declines Ahead of Upcoming Earnings
International Business Machines Corporation's stock closed the day down 4.68% at $291.35, fluctuating between an intraday high of $301.60 and a low of $290.16. IBM's 52-week share price ranges from $214.50 at the low end to $324.90 at the high.
Market analysts remain optimistic about IBM's prospects, with some projecting an approximate 8% price increase following the company's forthcoming earnings report scheduled for next week. The recent price decline reflects short-term selling pressure but does not appear to diminish longer-term positive sentiment regarding IBM's operational trajectory.
United Airlines Posts Strong Earnings Despite Share Price Decline
United Airlines experienced a 4.34% drop in share value, closing at $108.57. During the session, shares moved between a high of $112.20 and a low of $107.76, trading within a 52-week range of $52 to $119.21. In aftermarket trading, the stock rebounded, gaining 3.46% to $112.33.
The airline reported fourth-quarter earnings that surpassed Wall Street forecasts. Full-year diluted earnings per share (EPS) increased 8% year over year to $10.20, with adjusted EPS climbing to $10.62. The company also set an all-time quarterly revenue record, generating $15.4 billion in Q4. Despite facing an approximately $250 million pre-tax charge attributable to the recent government shutdown, United's Q4 diluted EPS stood at $3.19.
Management highlighted sustained momentum heading into 2026, driven by robust growth in premium and loyalty revenue streams, plans for fleet expansion with over 120 new aircraft deliveries, and continuous investments aimed at enhancing customer experience and infrastructure.
Block Inc. Details Alternative Lending Scale Amid Share Price Headwinds
Shares of Block Inc. dropped 5.03%, closing at $62.63. The stock experienced an intraday range from $62.48 to $64.57 and has traded between $44.27 and $94.25 over the last year.
Block disclosed it has extended more than $200 billion in credit through its suite of alternative lending platforms, including Cash App Borrow, Afterpay, and Square Loans, underscoring the breadth of its credit ecosystem. The company emphasized its consistent loss rate stability since 2013 despite rapid loan book growth. Unique underwriting methodologies leverage near real-time behavioral data instead of traditional credit scores.
Current repayment performance metrics include a 97% repayment rate at Cash App Borrow, 96% on-time installment payments at Afterpay, and sub-3% loss rates at Square Loans, significant portions of which are allocated to women- and minority-owned enterprises. Block's proprietary bank, Square Financial Services, has originated in excess of $20 billion in loans and is implementing enhanced transparency tools, such as the Cash App Score, to improve customer credit access.
Strategy Inc.'s Aggressive Bitcoin Accumulation Amid Stock Weakness
Strategy Inc. recorded a significant stock price decline of 7.76%, closing at $160.23, within an intraday price range of $158.85 to $165.72. Over the past year, the share price has fluctuated widely between $149.75 and $457.22. The firm disclosed selling approximately $2.1 billion in equity between January 12 and 19 to finance the acquisition of 22,305 bitcoins at an average cost of $95,284 per coin, substantially above its historical average purchase price.
This purchase raised Strategy's total bitcoin holdings to 709,715 bitcoins, acquired for a cumulative $53.92 billion at an average of $75,979 each, positioning the company among the largest institutional holders globally. Funding for recent acquisitions came through sales of preferred stock and over 10 million shares of common stock.
Despite these substantial bitcoin purchases, Strategy's shares have been trading near critical support levels, having declined more than 60% from their peak in July, reflecting market concerns over the equity valuation amidst significant cryptocurrency exposure.
Additional Market Observations and Data
NFLX possesses a momentum percentile ranking of 8 and a value ranking at 14, with price trend analysis from Benzinga Edge indicating negative short-, medium-, and long-term trajectories. Investors can prepare for future trading days by following premarket movers and news developed by market analytics platforms.
Overall, these developments illustrate a complex market environment characterized by investor caution, geopolitical uncertainties, corporate strategic maneuvers, and earnings outperformance juxtaposed with stock price pressures.