Global stocks mostly fall on lacklustre results from Netflix, others; gold tumbles again
NEW YORK: Gold prices fell for a second straight session on Wednesday (Oct 22), extending their sharpest one-day drop in more than five years, while Wall Street stocks slipped as Netflix shares tumbled following a weaker-than-expected outlook.
Spot gold fell 1.49 per cent to US$4,062.39 an ounce, as investors booked profits from one of the year’s best-performing trades. Despite the retreat, gold remains on track for its strongest year since the 1979 oil crisis, gaining more than 50 per cent so far in 2025.
Netflix shares dropped about 10 per cent, dragging major US indexes lower. The Dow Jones Industrial Average lost 392.08 points, or 0.84 per cent, to 46,529.77, while the S&P 500 fell 1.01 per cent to 6,667.43. The Nasdaq Composite slipped 1.69 per cent to 22,567.94.
Investors also awaited results from Tesla later on Wednesday, marking the start of earnings season for the so-called “Magnificent Seven” group of tech giants. Tesla shares were down around 2.5 per cent in afternoon trading.
MARKETS EYE TRADE AND RATE OUTLOOKS
Investor sentiment was further pressured by a Reuters report that the Trump administration is considering sweeping curbs on exports to China, including products made with US software, in response to Beijing’s new rare earth restrictions.
“It looks like we’re letting a little air out of the balloon,” said Oliver Pursche, senior vice president at Wealthspire Advisors. “Given the sharp rally since April and the absence of new data due to the government shutdown, investors are taking profits and rebalancing.”
Globally, MSCI’s index of world shares fell 0.73 per cent, while Europe’s STOXX 600 index eased 0.18 per cent. London’s FTSE 100 rose 0.9 per cent, its third consecutive gain, as bets grew on Bank of England rate cuts after inflation data came in steady.
CURRENCIES AND COMMODITIES
US Treasury yields dipped slightly, with the 10-year yield at 3.95 per cent, as the government shutdown dragged into its 22nd day. Markets have priced in a 25-basis-point rate cut at next week’s Federal Reserve meeting.
The yen strengthened after reports that Japan’s new Prime Minister Sanae Takaichi is preparing an economic stimulus package worth more than ¥13.9 trillion (US$92.2 billion) to support households hit by inflation.
The dollar index slipped 0.14 per cent to 98.84, while the euro edged up to US$1.1615.
Oil prices rose, with US crude gaining 2.25 per cent to US$58.53 a barrel and Brent crude up 2.05 per cent to US$62.58.
