TheDrop Market Analysis, 10/22/25
- Alexangel Ventura
- Oct 22
- 2 min read
Stocks fell on Wednesday in reaction to Netflix's poor earnings report, along with anticipation for Tesla's earnings report in the market's after hours.
The Nasdaq Composite, due to the rampant turbulence across major tech stocks like the previously mentioned Tesla, fell the most out of the three major indexes with its 1% decline in point value. Right behind were the S&P 500 index falling 0.5%, and the Dow Jones Industrial Average falling 0.7%. The VIX volatility index remained unchanged until right after noon, where it rose >4% for several hours until consolidating at right around 4.1%.
Global stocks fell after their major gains earlier this week, with the French CAC 40 falling 0.63% and the German DAX P falling 0.74%. Asian stocks had even worse losses with the Nikkei 225 falling 1.36% and the Hang Seng falling 0.94%. As expected, cryptocurrencies fell in valuation while commodities like gold and silver strengthened. Gold specifically made up much of its previous losses, reaching a near all-time high of $4,102.
Stocks rose as investors lost hope in recent firms' earnings report. The most prominent today was Netflix, which fell 10.1% in reaction to its very poor earnings results. This reflects the growing shift away from streaming applications like Netflix to simpler social media content pages like YouTube and TikTok.
The Magnificent Seven was hit in the afternoon by growing fears of a poor earnings report from Tesla, which eventually became realized in the market's after hours. Elon Musk employed a variety of methods to attract investors, like his own acquirement of $1 trillion from his own company to use a big number to spark hopes, however it seems like, at least in the near future, they rather want out.
Quantum computing stocks performed particularly poorly today as federal funding optimism weakens and analysts warn of a quantum bubble, with Rigetti falling by almost 10% and D-Wave Quantum Inc. (QBTS) falling 15.2%.
