[New York Market Briefing] Major indices fall together on US-China trade tensions…Netflix down 10%

The New York market closed lower across the board as US-China trade tensions combined with weak corporate earnings.

On the 22nd (local time) at the New York Stock Exchange, the Dow Jones Industrial Average closed at 46,590.41, down 334.33 points (0.71%) from the previous trading day.

The Standard & Poor's (S&P) 500 index closed at 6,699.40, down 35.95 points (0.53%). The Nasdaq index recorded 22,740.40, down 213.27 points (0.93%).

U.S. Treasury Secretary Scott Bessent confirmed plans for controls on core software exports, which weighed on investor sentiment. Earlier, U.S. President Donald Trump said he would double tariffs on Chinese-made goods from the 1st of next month and impose controls on core software exports.

Local media analyzed that, since this measure is related to China’s export controls to the U.S., U.S. responses could vary depending on how China’s rare earths export measures unfold.

Disappointing earnings from major companies also dampened investor sentiment.

Tesla said in an earnings report released after the market close that third-quarter revenue was $28.1 billion, up 12% year-on-year. This exceeded market expectations compiled by financial information firms LSEG and Bloomberg ($26.3~26.4 billion).

However, adjusted earnings per share (EPS) were $0.50, below the expected $0.54. Net income also fell 37% year-on-year to $1.37 billion. As a result, Tesla shares were down more than about 1% in after-hours trading.

Netflix said after the previous day's close that third-quarter adjusted EPS was $5.87 and revenue was $11.51 billion. EPS missed market expectations. On this news, Netflix shares plunged 10% that day.

Global semiconductor company Texas Instruments fell 5.60% after issuing lower-than-expected sales and profit guidance. Major semiconductor names such as onsemi (-5.72%), AMD (-3%), and Micron (-1%) also fell. The Philadelphia Semiconductor Index also dropped 2.36%.

Among major tech stocks, NVIDIA (-0.49%), Apple (-1.64%), Amazon (-1.84%), and Broadcom (-0.69%) fell. Microsoft (0.56%) and Alphabet (0.47%) edged up modestly.

Treasury yields were flat on the day. The U.S. 10-year Treasury yield, which serves as a global bond benchmark, fell 1bp (1bp = 0.01% point) to 3.953%, while the 2-year Treasury yield, which is sensitive to Fed policy, fell 0.8bp to 3.447%.

According to the CME FedWatch tool, fed funds futures reflect a 96.5% chance of a 50bp rate cut by December. The probability of a 75bp cut shrank to 0.2%.

No Jeong-dong, Hankyung.com reporter dong2@hankyung.com