The session results indicate that the selective index Dow Jones Industrial Average lost 0.71%, the tech-heavy Nasdaq fell 0.93%, and the broad S&P 500 depreciated 0.53%.
The start of the corporate earnings season was “generally solid,” though “Netflix’s performance was poorly received (…) and weighed on investor morale,” noted Jose Torres from Interactive Brokers.
Due to its valuation, Netflix “reflects high expectations and if the company does not meet them, investors are likely to struggle with it,” commented Dave Grecsek of Aspirant, speaking to AFP.
The streaming conglomerate reported third-quarter profits of $2.5 billion, much less than anticipated, attributing the shortfall to a tax dispute in Brazil.
This slowdown in its previously robust profitability caused the stock to plunge by 10.07%.
The stock exchange is now awaiting results from other major tech companies, including Tesla today and Intel on Thursday.
“The question is whether investors are overly enthusiastic about AI-related stocks,” Grecsek pointed out.
Meanwhile, Wall Street is closely monitoring developments on the trade front, with Donald Trump stating on Tuesday his hopes to conclude a “good” deal with Beijing.
Nonetheless, Trump added that the meeting with Xi Jinping, planned for next week, might not take place.
“It takes time for the two countries to negotiate (…), some of the volatility linked to tariffs might return” to the forefront of negotiations, warned Grecsek.
