U.S. equities fell on Wednesday as new developments out of Washington exacerbated concerns among investors about U.S.-China trade relations.
Disappointing corporate earnings from companies including Texas Instruments and Netflix also weighed on the major averages.
The Dow Jones Industrials crumbled 334.33 points to 46,590.41.
The S&P 500 slid 35.95 points to 6,699.40.
The tech-heavy NASDAQ declined 213.27 points to 22,740.40.
Stocks remained under pressure after Treasury Secretary Scott Bessent confirmed that the White House is weighing curbs on exports to China made with U.S. software. Reuters had first reported the move Wednesday.
Earlier in the day, equities had already taken a leg lower, hurt by Texas Instruments dropping 5% after the semiconductor company’s latest earnings came in weaker than expected. The company’s fourth-quarter earnings forecast was soft as well.
Texas Instruments also plagued the broader semiconductor sector more broadly. On Semiconductor declined 5%, and Advanced Micro Devices slipped 3%. Micron Technology.
Netflix shares also held back the market. The streaming platform slumped 9% after earnings missed estimates due to a dispute with Brazilian tax authorities.
The developments come after President Donald Trump almost two weeks ago said that the U.S. would implement export restrictions by Nov. 1 on “any and all critical software.”
The markets lagged after Trump commented about his expected meeting next week with Chinese President Xi Jinping. He noted that “maybe it won’t happen.”
Investors are now looking ahead to some upcoming earnings reports that could offer a boost to equities. For instance, Tesla’s earnings expected Wednesday after the bell will kick off highly-awaited reports from the “Magnificent Seven” megacap tech group.
As it stands, more than three-quarters of the S&P 500 companies that have posted results so far have beaten expectations.
Prices for the 10-year Treasury gained slightly, lowering yields back to Tuesday’s 3.96%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.50 to $59.74 U.S. a barrel.
Gold prices regained $13.00 to $4,122.10 U.S. an ounce.
