Wall Street Wobbles on Export Curbs, While India Markets Eye Trade Deal Breakthrough

Wall Street closed lower Wednesday as mixed earnings led by Netflix’s disappointing results  weighed on investor sentiment amid reports that the Trump administration is considering export curbs on U.S. software dependent goods to China.

The proposed restrictions, spanning products from laptops to jet engines, are being considered in response to Beijing’s latest rare earth export controls, marking another escalation in trade tensions between the world’s two largest economies.

Tesla’s Q3 results, released Thursday, showed profits fell short of expectations despite record EV sales, highlighting automaker pressures from shifting federal policies and rising costs. Apple faced an EU antitrust complaint from civil rights groups over App Store terms.

U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent are heading to Malaysia to meet Chinese officials as trade negotiations reach a critical juncture.

Semiconductor stocks also slumped, intensifying tech sector risk aversion.

Gold tumbled over 5% Wednesday extending its two-day decline to 6%, the worst since 2013 as traders took profits after record highs.

Crude oil surged more than 5%, reversing recent losses on an unexpected U.S. inventory drawdown and optimism about global demand. Prices extended gains after settlement, rising over $2 per barrel following U.S. sanctions on Russian oil giants Rosneft and Lukoil, though analysts warn that oversupply pressures persist.

The benchmark BSE Sensex ended 62.97 points, or 0.07%, higher at 84,426.34, while the NSE Nifty 50 settled 25.45 points higher in the special Muhurat trading session on 21 October 2025.

As Indian benchmark indices resume full trading on Thursday, October 23, 2025, following the Diwali Muhurat Trading session and Balipratipada holiday, markets may see substantial gains.

India and the United States are nearing a bilateral trade agreement (BTA) that could reduce US tariffs by more than half. The deal may be finalised and announced at this month’s ASEAN Summit, expected to be attended by President Donald Trump and Prime Minister Narendra Modi.

Markets are poised to open sharply higher, potentially marking a sixth consecutive session.

Source: HDFC Securities Prime Daily, 23 Oct 2025

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