US Stocks Drop Amid Export Controls Plans, Mixed Earnings, Trade Tensions

U.S. stock markets declined amid escalating trade tensions between the U.S. and China, with the Trump administration considering export controls on goods containing U.S. software in response to Chinese rare earth export limits. This development, alongside disappointing earnings reports from major companies like Netflix and Texas Instruments, contributed to investor unease and sector-specific losses, particularly in technology and consumer discretionary stocks. Despite these challenges, the broader third-quarter earnings season remains generally positive, with many companies meeting or exceeding forecasts. Energy stocks outperformed, helped by rising oil prices partly due to a potential U.S.-India agreement on Russian oil purchases. The ongoing U.S. government shutdown, now the second-longest in modern history, further pressured markets and Treasury yields. Meanwhile, geopolitical tensions continue, with the Trump administration lifting restrictions on Ukraine's use of Western long-range missiles and anticipating increased sanctions on Russia.