Wall Street closed lower on mixed earnings reports, including disappointing results from Netflix, which dampened risk sentiment among investors.
Investors were also cautious after reports that the administration of US President Donald Trump is considering imposing restrictions on exports to China that use US-made software.
All three major US stock indexes continued to fall after the report, with technology and communications services shares recording losses, causing the Nasdaq to suffer the biggest falls.
The Dow Jones Industrial Average fell 0.71% to 46,590.41 points, the S&P 500 fell 0.53% to 6,699.40 points, while the technology-focused Nasdaq fell 0.93% to 22,740.40 points.
In other developments, new export restrictions covering goods such as laptops and jet engines were seen as a response to Beijing's restrictions on rare earths, signaling an increase in trade tensions between the world's two largest economies.
Trump also said he expected a “very successful meeting” with Chinese President Xi Jinping, but acknowledged that a planned meeting in South Korea later this month may not take place.
Meanwhile, the third-quarter earnings season is well underway, with 86% of companies reporting beating Wall Street estimates.
According to the latest data from LSEG, analysts now expect third-quarter S&P 500 earnings growth of 9.3% year-over-year, compared with an 8.8% growth estimate on October 1.
Meanwhile, Netflix shares fell 10.1% after the streaming company missed quarterly profit expectations, raising concerns about its high valuation.
Texas Instruments shares also fell 5.6% after the company forecast revenue and profit below expectations.
Volume on the US exchange was $24.76 billion, compared with an average of $20.60 billion over the past 20 trading days.
