Wall Street closed lower on Wednesday, pulled down by tech and industrial stocks. Weak earnings from major tech players weighed on the sector while renewed U.S.-China trade tensions over possible software export curbs further dampened investor sentiment. All three benchmark indexes finished in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.7%, or 334.33 points, to close at 46,590.41. Twenty-one components of the 30-stock index ended in negative territory, while nine ended in positive.
The tech-heavy Nasdaq Composite lost 213.27 points, or 0.9%, to close at 22,740.40.
The S&P 500 shed 35.95 points, or 0.5%, to close at 6,699.40. Seven of the 11 broad sectors of the benchmark index closed in the red. The Industrials Select Sector SPDR (XLI), the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) declined 1.3%, 1% and 0.9%, respectively, while the Energy Select Sector SPDR (XLE) added 1.3%.
The fear gauge CBOE Volatility Index (VIX) increased 4.1% to 18.6. A total of 24.8 billion shares were traded on Wednesday, higher than the last 20-session average of 20.6 billion. Decliners outnumbered advancers by a 1.47-to-1 ratio on the NYSE and by 2.40-to-1 on the Nasdaq.
Disappointing Tech Earnings Drag Wall Street Lower
Disappointing quarterly results from Netflix, Inc. NFLX and Texas Instruments Incorporated TXN rattled investor confidence in the tech sector. Netflix reported weaker-than-expected subscriber growth and issued cautious guidance, sparking a sell-off in streaming and media stocks. NFLX’s stock plummeted 10.1% after reporting third-quarter 2025 earnings of $5.87 per share, which missed the Zacks Consensus Estimate by 14.8%. Meanwhile, despite reporting earnings that beat the Zacks Consensus Estimate, TXN’s revenue and outlook signaled soft demand in the semiconductor industry. Its stock fell 5.6%. The two reports triggered broader weakness in tech and communication services, leading to declines in the Nasdaq and S&P 500.
Consequently, shares of Advanced Micro Devices, Inc. AMD and Charter Communications, Inc. CHTR fell 3.3% and 3%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Renewed U.S.-China Trade Tensions Weigh on Wall Street
Wall Street indexes retreated on Wednesday as renewed U.S.-China trade tensions reignited investor anxiety. Reports that the U.S. Department of Commerce was considering new restrictions on software exports to Chinese firms triggered a sell-off in technology and semiconductor stocks. Investors feared a potential escalation in trade frictions that could disrupt global supply chains and hurt corporate earnings. Resurgent geopolitical uncertainty underscored Wall Street’s sensitivity to U.S.-China relations, dampening risk appetite and curbing broader market momentum.
Economic Data
Per a government report, for the week ending Oct. 17, 2025, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 1 million barrels from the previous week. The number for the week prior remained unrevised at an increase of 3.5 million barrels.
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Texas Instruments Incorporated (TXN): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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