U.S. equities fell on Wednesday as renewed concerns over U.S.–China trade relations and disappointing corporate earnings dampened investor sentiment.
The Dow Jones Industrial Average dropped 334.33 points (0.71%) to close at 46,590.41, while the S&P 500 slipped 0.53% to 6,699.40. The Nasdaq Composite declined 0.93% to 22,740.40. At their lows, all three major indexes were down around 1% or more.
Stocks extended losses after Treasury Secretary Scott Bessent confirmed that the White House is considering new export restrictions on products made with U.S. software bound for China — a move first reported by Reuters. This comes shortly after President Donald Trump announced plans to impose similar restrictions by November 1 on all “critical software.”
Earlier in the session, weak corporate earnings weighed heavily on the market. Texas Instruments fell 5.6% after reporting lackluster quarterly results and issuing a soft fourth-quarter forecast, which dragged down the broader semiconductor sector. On Semiconductor dropped nearly 6%, AMD lost over 3%, while Micron Technology and the VanEck Semiconductor ETF (SMH) both slipped around 2%.
Netflix also pressured the market, tumbling 10% after missing earnings expectations due to a dispute with Brazilian tax authorities. In contrast, Intuitive Surgical provided a rare bright spot, surging nearly 14% on strong revenue and earnings results.
Investors are now awaiting key reports from major tech names, starting with Tesla’s earnings after the bell, which will kick off results from the “Magnificent Seven” megacap tech group.
Despite recent volatility, FactSet data shows that over 75% of S&P 500 companies reporting so far have exceeded expectations. Still, analysts warn that management guidance could turn cautious as the earnings season broadens.
The pullback followed a record-setting session for the Dow, which briefly topped 47,000 on Tuesday amid strong results from Coca-Cola and 3M. However, the S&P 500 and Nasdaq lagged after Trump suggested that his upcoming meeting with Chinese President Xi Jinping could be canceled.
