U.S. stock index futures fell on Thursday evening, extending losses after questions over Nvidia’s shareholder returns overshadowed strong earnings from the AI major. 

Losses in Nvidia spurred deep declines on Wall Street on Thursday, with technology shares leading declines. Middling earnings from cloud major Coreweave also weighed. 

Netflix Inc (NASDAQ:NFLX) was an outlier, surging 9% in aftermarket trade after the streaming giant said it will not increase its offer for Warner Bros Discovery Inc (NASDAQ:WBD) following an upgraded offer from Paramount Skydance Corp (NASDAQ:PSKY). 

S&P 500 Futures fell 0.4% to 6,892.0 points by 19:00 ET (00:00 GMT). Nasdaq 100 Futures fell nearly 0.4% to 24,994.0 points, while Dow Jones Futures fell nearly 0.6% to 49,260.0 points. 

Nvidia slides post earnings, dents Wall St 

NVIDIA Corporation (NASDAQ:NVDA) was the biggest weight on Wall Street on Thursday, sliding over 5% despite logging bumper quarterly earnings. The stock steadied in aftermarket trade. 

Questions over more shareholder returns, especially after a sharp increase in the company’s cash balance, weighed on the stock, as did some profit-taking after a strong run-up ahead of its earnings.

Lingering concerns over more competition in AI server chips also weighed, with rival AMD (NASDAQ:AMD) having recently signed a major supply deal with Meta Platforms Inc (NASDAQ:META). Alphabet Inc’s (NASDAQ:GOOGL)’s Google has also emerged as a potential rival with its tensor chips, with media reports on Thursday stating that the company had signed a multibillion-dollar deal with Meta. 

Losses in Nvidia spilled over into broader tech stocks, dragging the NASDAQ Composite down 1.2% to 22,878.38 points. 

The S&P 500 fell 0.5% to 6,908.89 points, while the Dow Jones Industrial Average ended flat at 49,499.20 points. 

The Nasdaq was set to lose 2.5% this month, while the S&P was down 0.4% following sustained losses in tech shares. The Dow was trading up 1.2% for February, having benefited from a pivot into non-tech sectors.  

Netflix surges after declining to raise Warner Bros offer 

Netflix rallied as much as 9% in aftermarket trade, hitting an indicated 1-½ month high after the streaming giant said it will not raise its offer for Warner Bros.

This was after Warner determined an upgraded, $31 a share offer from Paramount Skydance was the superior proposal. 

Netflix said that with the price required to match Paramount’s latest offer, the deal was “no longer financially attractive.” 

Still, the streaming giant is set to receive $2.8 billion as a termination fee from Paramount if Warner picks the latter. Warner shareholders are set to vote on the Netflix deal on March 20. 

Netflix declining to further pursue Warner marks a potential end to one of the largest high-profile bidding wars in the media industry. The streaming giant and Paramount had aggressively pursued Warner, with its studio assets and host of popular franchises being viewed as highly attractive. 

Among other major aftermarket movers, Block Inc (NYSE:XYZ) soared over 20% after it said it will slash 40% of its workforce. The layoffs largely overshadowed middling quarterly earnings from the payments firm. 

CoreWeave slid 10% after the cloud computing firm clocked a bigger-than-expected loss, while investors balked at its forecast of even more capital spending on cloud infrastructure.