Risk sentiment deteriorated sharply on Wednesday as a wave of disappointing earnings guidance and escalating U.S.-China trade tensions rattled investor confidence.
The Trump administration is considering new restrictions on exports to China that would target products either made with or containing U.S.-developed software. If enacted, the measure could significantly curb global shipments of a wide range of goods to China, deepening the tech trade war between the world's two largest economies.
The Nasdaq 100 fell 1.2% to 24,820 points, while the S&P 500 declined 0.7% to 6,690. Technology was the session's worst-performing sector, with semiconductor stocks leading losses. The iShares Semiconductor ETF (NYSE:SMH) dropped 2.8%.
The VIX – also known as the market’s fear gauge – rallied 9% to 19.6 levels.
Netflix Inc. (NASDAQ:NFLX) was the S&P 500's biggest laggard, plunging 10.2% in its worst session since April 2022. The streaming giant fell short of third-quarter profit estimates after incurring a $619 million tax dispute-related loss in Brazil, which overshadowed its otherwise strong content performance.
Other notable decliners included Super Micro Computer Inc. (NASDAQ:SMCI), down 7.2%, and Robinhood Markets Inc. (NASDAQ:HOOD), which fell 7%.
On the upside, Intuitive Surgical Inc. (NASDAQ:ISRG) soared 14% after posting better-than-expected quarterly results.
Gold prices extended losses for a second straight day, with the metal falling 1.8% to $4,050 per ounce after Monday's dramatic 5.3% plunge. However, the renewed threat of U.S. tech export controls to China offered some intraday support to the safe-haven asset. Silver dropped another 1.2% to $48 per ounce, following Monday's volatile 7.1% slide.
Crypto sentiment also turned negative. Bitcoin (CRYPTO: BTC) slipped 0.3% to $108,000, while altcoins saw steeper declines. Shares of Coinbase Global Inc. (NASDAQ:COIN) and MicroStrategy Inc. (NASDAQ:MSTR) dropped 6% and 4.9%, respectively.
Wednesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day % |
| Dow Jones | 46,676.43 | -0.5% |
| S&P 500 | 6,689.86 | -0.7% |
| Nasdaq 100 | 24,819.43 | -1.2% |
| Russell 2000 | 2,439.65 | -1.9% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) dropped 0.8% to $612.22.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) fell 0.6% to $466.22.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) dropped 1.4% to $602.63.
- The iShares Russell 2000 ETF (NYSE:IWM) sank 2% to $242.01.
- The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) outperformed, up 1%; the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 1.6%.
Wednesday’s Stock Movers On Earnings Reports
- Netflix Inc. (NASDAQ:NFLX) down 10.2%
- Thermo Fisher Scientific Inc. (NYSE:TMO) up 2.0%
- AT&T Inc. (NYSE:T) down 2.3%
- Boston Scientific Corp. (NYSE:BSX) up 4.9%
- Amphenol Corp. (NYSE:APH) up 1.8%
- Texas Instruments Inc. (NASDAQ:TXN) down 6.9%
- GE Vernova Inc. (NYSE:GEV) down 4.0%
- Capital One Financial Corp. (NYSE:COF) up 2.3%
- CME Group Inc. (NASDAQ:CME) up 1.5%
- Moody's Corp. (NYSE:MCO) down 1.1%
- Hilton Worldwide Holdings Inc. (NYSE:HLT) up 4.7%
- Westinghouse Air Brake Technologies Corp. (NYSE:WAB) down 1.3%
- Teledyne Technologies Inc. (NYSE:TDY) down 2.8%
- Northern Trust Corp. (NASDAQ:NTRS) down 2.4%
- NVR Inc. (NYSE:NVR) down 1.1%
- Lennox International Inc. (NYSE:LII) down 8.4%
- Omnicom Group Inc. (NYSE:OMC) up 4.3%
- East West Bancorp Inc. (NASDAQ:EWBC) up 3.4%
- Manhattan Associates Inc. (NASDAQ:MANH) down 4.6%
- Western Alliance Bancorporation (NYSE:WAL) up 2.3%
- Agree Realty Corp. (NYSE:ADC) up 0.5%
- Mattel Inc. (NASDAQ:MAT) down 3.9%
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