Stock Market Today - Nasdaq Drops 0.44% as Netflix (NFLX) Sinks; Tesla (TSLA) Earnings in Focus

Major Indices Retreat as Earnings and Commodities Volatility Shape Sentiment

U.S. markets slipped on Wednesday as the Dow Jones Industrial Average (^DJI) declined 0.17% to 46,845.46, the S&P 500 (^GSPC) edged 0.17% lower to 6,724.13, and the Nasdaq Composite (^IXIC) dropped 0.44% to 22,852.35, weighed down by technology losses. The Russell 2000 (^RUT) slid 1.4% to 2,452.79, signaling weakness in small caps. Despite an 87% earnings beat rate among S&P 500 firms, momentum faded amid cautious guidance. The VIX rose 6.6% to 19.05, while the U.S. 10-year Treasury yield held at 3.977%.

Tesla (TSLA) Dominates Focus Ahead of Record-Setting Q3 Report

Tesla (NASDAQ:TSLA) traded at $437.45 (-1.16%) as investors positioned ahead of earnings. Wall Street expects $26.27 billion in revenue, up 4% YoY, and $0.53 EPS with $3.78 billion in EBITDA, following record deliveries of 497,099 vehicles, smashing estimates of 439,800. Tesla’s energy storage output also hit a record 12.5 GWh, reinforcing the company’s vertical expansion. The key risk centers on the expiration of the $7,500 U.S. EV tax credit, which ended September 30, potentially curbing demand in Q4. Tesla trades at a 191x forward P/E, far exceeding peers like Microsoft (MSFT) at 32x, highlighting how future robotaxi and AI prospects are priced in. Investors await whether Musk’s narrative of autonomous scalability can offset near-term compression in margins and delivery momentum.

Netflix (NFLX) Plunges as Tax Dispute Undermines Profitability

Netflix (NASDAQ:NFLX) cratered 9.44% to $1,124.22 after reporting $5.87 EPS, missing expectations of $6.97, on $11.51 billion revenue. A $619 million tax liability in Brazil shaved the operating margin down to 28%, from a forecasted 30%, leading to a downgrade in full-year margin guidance to 29%. The streaming giant maintained its ~16% revenue growth outlook and projected ad-tier income to double in 2025, with engagement metrics hitting all-time highs for the $7.99 plan. Still, the selloff erased nearly $60 billion in market value, exposing fragility in high-multiple tech stocks and reinforcing broader Nasdaq weakness.

Intuitive Surgical (ISRG) Surges on Blockbuster Earnings Beat

Intuitive Surgical (NASDAQ:ISRG) soared 16.31% to $538.22 following Q3 earnings of $2.40 per share on $2.51 billion revenue, beating consensus estimates of $1.98 EPS and $2.4 billion. The firm raised its gross margin outlook to 67–67.5%, citing lower-than-expected tariff costs and a rebound in procedure volume. Global da Vinci-assisted surgeries rose 17–17.5%, topping previous guidance, as hospitals expanded minimally invasive care capacity. ISRG’s robust margins, 0.7% tariff exposure, and global scale drove healthcare’s outperformance within the S&P 500, countering weakness in semiconductors and streaming.

Texas Instruments (TXN) and the Semiconductor Drag

Texas Instruments (NASDAQ:TXN) fell 4.83% to $172.10 after issuing weak Q4 guidance, signaling a delayed recovery for the chip sector. CEO Haviv Ilan cautioned that the “semiconductor rebound remains slow,” linking softness to macro uncertainty and lingering tariff effects. TI expects further pressure as Trump’s 100% import tariff on foreign-made semiconductors limits supply chains, despite exemptions for U.S. manufacturers. Analysts warn that trade friction could mute recovery momentum across industrial chips, cloud infrastructure, and automotive components.

AI Infrastructure Stocks Extend Gains: GE Vernova (GEV) and Vertiv (VRT)

AI infrastructure plays outperformed as GE Vernova (NYSE:GEV) and Vertiv Holdings (NYSE:VRT) rallied 4–6% intraday on strong order backlogs. GE Vernova reported a 55% order surge led by its electrification division, swinging to $1.64 EPS versus a $0.35 loss last year, while Vertiv saw ~60% order growth and 63% YoY profit increase. Both cited “pricing power above inflation” as AI data center demand accelerates grid modernization. This reinforces the “AI utility trade,” with energy infrastructure becoming a stealth beneficiary of the AI boom as hyperscalers scale up electricity investment.

Gold (GC=F) Suffers Historic Pullback; Crude Oil (CL=F) Rebounds

Gold futures (GC=F) tumbled 1.97% to $4,028.10/oz, extending Tuesday’s record one-day collapse of over 6%, its steepest drop since 2013. Spot gold briefly dipped below $4,000, then stabilized as traders booked profits after a 55% YTD gain. The selloff followed speculation from IMF and World Bank meetings suggesting gold’s rally “overshot fundamentals.” Silver hovered at $47.59 (-0.24%), while platinum rose 0.87% to $1,532.50. Meanwhile, crude oil (CL=F) reversed higher by 1.35% to $58.60, aided by U.S. strategic reserve repurchase plans and reports that India will reduce Russian crude imports. Brent (BRN00) advanced 2.1% to $62.61, restoring energy sentiment after a multi-week decline.