The S&P 500 closed lower Wednesday, weighed down by fresh U.S.-China trade war concerns and a slump in streaming giant Netflix following an earnings miss.
At 4:00 ET (20:00 GMT), the Dow Jones Industrial Average slipped 334 points, or 0.7%, the S&P 500 index fell 0.5%, and the NASDAQ Composite fell 0.9%.
Trade war jitters flare Fresh concerns that U.S.-China trade could be set for another blow came following Reuters report suggesting that the Trump administration is mulling a ban on Chinese exports made with U.S. software.
The news added further doubt on whether the much-anticipated meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping in South Korea would take place later this month.
Netflix’s margin disappoints; Tesla to report Netflix (NASDAQ:NFLX) stock slumped after it reported a third-quarter operating margin of 28%, which missed Wall Street expectations, due largely to charges related to a spat with tax authorities in Brazil.
Still, revenue and profit for the period grew, powered by the firm’s best-ever quarter for advertising sales, along with a jump in membership and higher prices.
Toy company Mattel (NASDAQ:MAT) also disappointed investors after missing estimates and reporting weaker North American sales.
Elsewhere on Wednesday’s earnings docket, telecoms group AT&T (NYSE:T) added more wireless subscribers than expected in the third quarter, as bundled plans and heavy promotions around the latest iPhone launch helped it attract more customers in a fiercely competitive market.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. GE Vernova (NYSE:GEV) stock fell after the energy transition company missed third-quarter earnings estimates, despite revenue exceeding expectations on robust growth in orders and backlog.
Hilton Worldwide(NYSE:HLT) stock gained after the hotel operator outpaced quarterly earnings expectations, even after it slashed its forecast for 2025 room revenue, hurt by muted U.S. travel demand.
Also, Apple (NASDAQ:AAPL) stock fell after the Nikkei reported that the tech giant is “drastically” cutting production orders for its new iPhone Air model and shifting focus toward other iPhone 17 variants.
Numbers from electric vehicle manufacturer Tesla (NASDAQ:TSLA) are due after the close, and will kick off highly-awaited reports from the “Magnificent Seven” megacap tech group.
The company unveiled record third-quarter deliveries earlier this month, fueled by a marketing and discounting campaign aimed at boosting sales prior to the withdrawal of a $7,500 U.S. tax credit for EV buyers. Worries have, in turn, swirled around how Tesla’s performance will be impacted following the expiration of the tax credits.
Geopolitical tensions remain At the same time, a possible summit between Trump and Russia’s Vladimir Putin was put on hold after Russian officials reportedly indicated that there was no intention to end an ongoing war in Ukraine.
Investors are also turning their attention to Friday’s U.S. consumer price index, which could cement expectations for a Federal Reserve interest rate cut at its October meeting.
The shutdown of large parts of the federal government is complicating data flows and could cloud the inflation signal. The gridlock, now entering its fourth week, has delayed or paused key economic data releases, adding uncertainty.
