Stocks Hit by Momentum Unwind as Tesla Falls Late: Markets Wrap

Tesla Profits Expected to Drop 25% in Third Quarter

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By Rita Nazareth

October 21, 2025 at 10:31 PM UTC

Updated on

October 22, 2025 at 8:50 PM UTC

Volatility resurfaced on Wall Street in a session that saw stocks falling alongside gold and cryptocurrencies. News reports saying the Trump administration is weighing restrictions on software exports to China added to recent anxiety around trade.

Following a torrid rally, calls for a breather have emerged. The Nasdaq 100 lost 1% after a tepid outlook from Texas Instruments Inc. and a 10% slump in Netflix Inc. In late hours, Tesla Inc. slid as earnings missed estimates despite a sales surge. Traders also kept an eye on geopolitics, with Treasury Secretary Scott Bessent saying the US will ratchet up Russia sanctions.