04:43 PM EDT, 10/22/2025 (MT Newswires) -- US equities fell on Wednesday amid worries about a potential stalemate in trade negotiations between Washington and Beijing, while Netflix's ( NFLX ) shares plunged following a quarterly earnings miss.

The tech-heavy Nasdaq dropped 0.9% to 22,740.4, extending losses from the previous session. The Dow Jones Industrial Average lost 0.7% to 46,590.4 following Tuesday's record-high close, while the S&P 500 declined 0.5% to 6,699.4.

Among sectors, industrials saw the biggest drop, while energy led the gainers.

The Trump administration is contemplating a plan to curb various software-powered exports to China, including jet engines and laptops, in retaliation to Beijing's recent move to restrict exports of rare earths minerals, Reuters reported Wednesday, citing a US official and three people briefed by US authorities.

On Tuesday, US President Donald Trump reportedly said his upcoming meeting with China's Xi Jinping should yield a "good" trade deal, though he said there's a possibility the meeting may not happen.

"We're not convinced that there will be enough of a definitive 'deal' between the US and China in coming weeks to relieve traders of uncertainty on this issue," Macquarie said in a report Wednesday. "Negotiations that lead to 'deals' happen when both sides are not evenly matched, and one side relents."

Meanwhile, the US and India are reportedly close to reaching a trade deal that will see tariffs on the Asian country reduced to between 15% and 16% from 50%.

West Texas Intermediate crude oil was up 3.6% at $59.31 a barrel in Wednesday late-afternoon trade. "Oil prices rose, buoyed by hopes of progress of a US trade deal with China and India," D.A. Davidson said in a note.

In company news, Netflix ( NFLX ) shares tumbled 10%, the second-worst performer on the S&P 500. The streaming giant's third-quarter earnings trailed Wall Street's estimates late Tuesday as it booked a tax expense related to an ongoing dispute with Brazilian authorities.

Netflix's ( NFLX ) core fundamentals likely remain intact even as the company didn't offer a financial outlook for 2026, BofA Securities said in a Wednesday note.

AT&T ( T ) on Wednesday reported an unexpected year-over-year increase in third-quarter postpaid phone subscribers, while the telecommunications giant anticipates full-year earnings to be at the higher end of its prior outlook range. The company's shares fell 1.9%.

Intuitive Surgical ( ISRG ) was the best performer on the S&P 500, up nearly 14%. The robotic surgical systems company late Tuesday posted stronger-than-expected third-quarter results, driven by double-digit growth in procedure volumes.

"Perhaps amid reports that US corporate earnings outcomes for (the third quarter) have been much better than expected, there may remain some worries about guidance from management as the US corporate earnings season expands to encompass more stocks and more sectors," Macquarie said.

US Treasury yields were lower, with the 10-year rate falling 1.7 basis points to 3.96% and two-year rate down 0.8 basis point at 3.45%.

A US federal government shutdown entered its 22nd day Wednesday, making it the second-longest funding lapse in modern history, CBS News reported.

Gold was up 0.4% at $4,124.40 per troy ounce, while silver gained 1.5% to $48.43 per ounce.