The U.S. stock market got off to a dramatic start on Wednesday morning as gold prices slipped back into the red, Market Movers reported. Gold prices have been constantly updating in recent months. Last night prices fell by 5%. But Wednesday morning brought bad news.
Meanwhile, other headlines that hit the headlines on October 22 are being streamed by giant Netflix. Netflix disappointed Wall Street in its latest earnings, according to Reuters. The streaming giant saw its shares tumble overnight, falling nearly 6%.
From gold to Netflix and Tesla to IBM, here’s everything you need to know about the stock market on Wednesday morning.
Gold retreated after last night’s plunge
Gold is having one of its brightest years with its price constantly increasing. But Wednesday morning brought bad news. Spot gold prices fell 2.1%, according to Investing.com. It currently costs $4039.48 per ounce. Meanwhile, US gold futures also reported some decline. It now stands at $4,050.64 an ounce after falling 1.4%.
On Tuesday evening, prices fell 5%, marking one of the steepest one-day price declines since 2020.
Netflix faces a 6% drop.
Netflix shares fell 6% in after-hours trading. That’s far below Wall Street’s expectations for the streaming giant. The fall was a result of the company’s problems with tax authorities in Brazil, the report said. The rift could also affect the company’s annual margins.
Tesla and IBM will report today
The two main stocks to watch today are Tesla and IBM. Reuters reported that both companies could outperform in the quarter, beating U.S. market expectations. Tesla performed well in the quarter and has already reported record deliveries. The company’s sales chart is currently positive.
International events to focus on
With major international events taking place around the world, especially in relation to the US, the market may see further changes later in the day. Russian President Vladimir Putin’s meeting with US President Donald Trump was postponed on Tuesday as Moscow has not yet agreed to ceasefire agreements with Ukraine. Meanwhile, Japan’s newly appointed president could introduce new policies to tackle the country’s inflation.
Frequently asked questions
1. Why are gold prices falling?
Gold fell 2.1% on Wednesday after a 5% drop on Tuesday, its steepest drop since 2020, driven by market volatility.
2. What caused Netflix stock to fall?
Netflix shares fell 6% in extended trading after disappointing earnings and a tax dispute with Brazil.
3. What is expected of Tesla and IBM today?
Tesla and IBM are set to report earnings later today, with analysts expecting both to beat market estimates.
