U.S. equities ended lower on Wednesday, pressured by renewed concerns over U.S.-China trade relations and a string of disappointing corporate results. The Dow Jones Industrial Average fell 334 points, or 0.71%, to close at 46,590. The S&P 500 dropped 0.53% to 6,699, while the Nasdaq Composite shed 0.93% to finish at 22,740. At one stage, the Dow was down more than 400 points before clawing back some of its losses.
Washington weighs new export curbs
Investor sentiment was hit after Treasury Secretary Scott Bessent confirmed the White House is weighing restrictions on software exports to China. Reuters first reported the move, which follows President Trump’s earlier pledge to implement restrictions by November 1 on what he called “any and all critical software.” The tech-heavy Nasdaq bore the brunt, with the sector sliding on the prospect of fresh trade barriers.
Corporate earnings disappoint
Earnings also played a key role in Wednesday’s weakness. Texas Instruments slumped 5.6% after posting weaker-than-expected results and issuing a soft forecast. The news dragged down peers across the semiconductor sector, with On Semiconductor down nearly 6%, AMD losing more than 3%, and Micron and the VanEck Semiconductor ETF off about 2%.
Netflix was another major weight, tumbling 10%, its steepest fall in more than three years, after a tax dispute in Brazil cut into its third-quarter earnings. The disappointment offset optimism from Intuitive Surgical, which jumped nearly 14% on strong revenue and profit.
Tesla results
Tesla reported a 12% increase in revenue to $28.1bn, beating expectations, though earnings missed as net income fell 37% to $1.37bn. Deliveries hit a record 497,099 vehicles, while energy storage revenue surged 44%. Shares slipped about 2% in extended trade.
Market outlook and earnings ahead
More than three-quarters of S&P 500 companies reporting so far have beaten earnings expectations, according to FactSet, though analysts warn that management guidance could weigh on sentiment.
Australian market set to follow lower
Closer to home, Australian shares are poised to extend their declines. SPI 200 futures point to a 15-point fall, or 0.2%, at the open. A raft of local earnings and annual meetings are on deck, including results from Alcoa, Coronado Global Resources, Fortescue, Insignia Financial, Northern Star, and Regis Resources. Major companies holding annual meetings include Auckland International Airport, BHP, Brambles, Perpetual, and Cochlear.
