Nasdaq 100: Trump’s China Export Threats and Earnings Misses Hit Tech Stocks

Stocks Retreat as Trump Threatens China Export Curbs and Meeting Cancellation

U.S. stocks lost ground Wednesday as geopolitical tensions resurfaced and key corporate earnings fell short. The Dow Jones Industrial Average declined 175 points, or 0.4%, while the S&P 500 and Nasdaq dropped 0.52% and 1.85%, respectively.

Markets weakened sharply after President Donald Trump cast doubt on a planned meeting with Chinese President Xi Jinping and floated sweeping export restrictions targeting China.

Is a fresh round of U.S.-China trade escalation brewing?

Sources briefed by U.S. officials revealed that the Trump administration is evaluating aggressive export controls on China, potentially blocking a wide array of items made with U.S. software—ranging from laptops to jet engines.

The plan, which could mirror export sanctions previously used against Russia, would respond to Beijing’s latest restrictions on rare earth element exports.

While the restrictions are not finalized, Trump’s comments this month—promising 100% tariffs and new controls by November 1—suggest a hardening stance.

On Tuesday, he said his meeting with Xi “maybe won’t happen,” adding uncertainty to a relationship already strained by trade and technology tensions. The potential for unilateral U.S. action has drawn criticism from China, which warned of retaliatory measures.

The development has shifted sentiment among traders, raising the risk of renewed trade barriers that could hit U.S. multinationals and disrupt global supply chains.

Which companies missed the mark on earnings?

Texas Instruments dropped over 6% after its Q4 earnings outlook disappointed, dragging down chipmakers broadly. Advanced Micro Devices, Micron, and On Semiconductor each lost around 3%, while the VanEck Semiconductor ETF fell 2%. Netflix tumbled nearly 10% after citing a tax dispute in Brazil and reporting lower-than-expected EPS of $5.87 versus a $6.97 estimate.

Though roughly 75% of S&P 500 companies have beaten Q3 estimates, investor focus is now shifting to guidance, which has trended cautious.

Were there any earnings-driven outperformers?

Intuitive Surgical surged 14% after strong earnings and revenue results. Winnebago Industries climbed over 25% following its beat, while Vicor and Travel + Leisure posted double-digit gains. Meanwhile, Beyond Meat gave back gains tied to a new Walmart distribution deal, as volatility continued.

What sectors showed strength and which lagged?

Health care outperformed, gaining nearly 1% as Intuitive Surgical lifted the group. Consumer staples also rose close to 1%, while energy was modestly higher. Technology and communication services led losses, down more than 1%, followed by industrials and consumer discretionary.

What’s the market outlook with earnings and geopolitics colliding?

With earnings from Tesla and other megacaps looming, the near-term market tone hinges on forward guidance.

However, growing uncertainty around U.S.-China relations introduces downside risk. A bearish bias could emerge if Trump moves forward with software-based export controls or cancels the Xi meeting, raising concerns about renewed trade fragmentation just as corporate earnings growth moderates.

More Information in our Economic Calendar.