Stocks slip as weak Netflix results and tariff concerns weigh on markets

Global stock markets mostly declined Wednesday as disappointing corporate earnings, including from Netflix and Tesla, dampened investor sentiment amid ongoing trade tensions and a sharp drop in gold prices.

In the United States, major indices retreated, with the Dow Jones Industrial Average falling from a record high reached the previous day. Netflix tumbled more than 10 percent after missing earnings expectations, fueling concerns that upcoming reports from other major tech firms could also disappoint.

“Any time you’ve got stocks that are priced with high expectations, if you’re not meeting those expectations, then the market is going to struggle with that,” said Dave Grecsek, partner at wealth management firm Aspirant. He added that investors were questioning whether markets had become “overextended” in the artificial intelligence trade.

Tesla shares also came under pressure after the electric carmaker reported a 37 percent drop in quarterly profits to $1.4 billion, missing analyst forecasts. The company cited tariffs and rising costs as key drags on performance.

European stocks mirrored the weakness, following declines across Asian markets earlier in the day. London’s FTSE 100 was a rare gainer, lifted by a weaker pound after UK inflation data came in below expectations, increasing the likelihood of another Bank of England rate cut later this year.

Gold prices extended their sharp fall, losing another 1.4 percent to around $4,060 an ounce, after plunging six percent on Tuesday from record highs above $4,381. The sell-off rattled investors and weighed on gold-mining stocks. Analysts said traders were debating whether the decline marked a broader shift or a temporary correction.

In company news, L’Oreal fell 6.7 percent in Paris after missing third-quarter earnings expectations, with US tariffs hurting American sales. In contrast, Barclays and UniCredit reported strong results, easing concerns about potential banking sector instability.

Broader market sentiment remained cautious amid renewed US-China trade tensions and uncertainty about the global earnings outlook.