Updated 2 min read
US stocks recovered from the previous day’s steep sell-off as the ADP payrolls report showed a return to job growth in the private sector last month. Investors were also eyeing a pivotal day for President Trump’s tariffs and the federal shutdown.
The S&P 500 (^GSPC) pushed up by 0.6%, and the tech-heavy Nasdaq Composite (^IXIC) rose 0.9%. The Dow Jones Industrial Average (^DJI) ticked 0.2% higher.
Stocks erased their premarket slide after an ADP report showed private-sector employment increased by 42,000 in October — topping expectations in a marked turnaround from September’s revised decline of 29,000. The labor data will likely feed into the Federal Reserve’s thinking amid an ongoing data blackout from the government shutdown.
Fears of a stock bubble continue to stalk markets, and a global sell-off in chip names at one point wiped out $500 billion in value. AMD (AMD) could add more fuel to that fire, after the AI chipmaker’s earnings beat estimates but still underwhelmed, dragging the stock price lower.
Eyes are now on Qualcomm (QCOM) for more clues to the AI trade, with the chipmaker’s results slated after the market close. Elsewhere in earnings season, McDonald’s (MCD) posted a US sales beat but flagged “consumer headwinds”.
Meanwhile, the US shutdown is now the longest ever after entering its 36th day on Wednesday. Economic pain from the stoppage continues to mount, with the hit estimated at $15 billion a week, as Trump administration officials warn of potential “mass chaos” for air travelers.
On the trade front, the Supreme Court begins hearing arguments on Wednesday in a case questioning Trump’s legal authority to impose his sweeping tariffs — a landmark test of presidential power. The justices’ eventual decision is likely to have significant consequences for the global economy.
LIVE 13 updates
-
Rivian stock surges after Q3 beat, R2 midsize SUV on track for 2026
Rivian stock spiked more than 16% on Wednesday.
Yahoo Finance’s Pras Subramanian reports:
-
AMD stock in focus after Q3 report fails to wow investors
AI chipmaker Advanced Micro Devices (AMD) saw its stock waver on Wednesday after the Nvidia rival reported third quarter earnings that topped analysts’ expectations and provided a strong fourth quarter outlook.
Citi analyst Chris Danely said investors may be focused on slowing growth in its AI business, as AMD’s data center segment saw revenue rise 22% in its third quarter.
That’s more than the 14% revenue increase recorded by the segment in the second quarter — but far below the revenue growth of more than 50% (and in some cases, 100%) seen in the five quarters before that.
AMD sells GPUs (graphics processing units, or AI chips) that are used in data center servers to train and run AI models.
But Danely lifted his price target on shares to $260 from $215, saying he expects AMD to raise its long-term revenue guidance at its analyst day next week.
The chipmaker recently inked big deals with OpenAI and Oracle.
-
US services sector shows growth in October, but consumers still under pressure
The headline S&P US Services PMI rose to 54.8 in October from 54.2 in September but was lower than the 55.2 expected, according to economists tracked by Bloomberg.
The headline Purchasing Manager’s Index measures business activity in the services sector with data from over 1,300 US companies that employ the majority of American workers. A reading above 50 signals expansion in the sector, while readings below 50 signal contraction.
The latest survey noted that businesses are absorbing higher input prices to remain competitive as consumers push back on prices.
“While good news in terms of inflation, this lack of pricing power hints at weak underlying demand and lower profits,” wrote Chris Williamson, chief business economist at S&P Global Market Intelligence.
Williamson added that business expectations for the year ahead have fallen sharply due to spending caution from consumers and heightened political and economic uncertainty — partly due to tariffs.
Meanwhile, the ISM Services PMI came in at 52.4 for October, above the expected 50.8, with 11 industries reporting growth, including food services, retail, real estate, healthcare, and technology.
But ISM’s report noted that employment in the services sector continues to contract. ISM’s employment index for the services sector registered a reading of 48.2 in October, up from 47.2 in September.
-
Supermicro stock falls 7%
AI server maker Supermicro (SMCI) saw its stock drop more than 7% in early trading on Wednesday after its earnings and revenue for the first quarter fell below analyst expectations.
Supermicro’s adjusted earnings per share of $0.35 were lower than the $0.41 projected by analysts, according to Bloomberg consensus estimates, but an increase from $0.07 in the year-ago period.
The company — which was embroiled in controversy last year related to allegations of accounting violations — reported revenue of $5.02 billion for the period, down from $5.94 billion during the first quarter of 2024 and less than the $6.09 billion expected by analysts.
To be sure, Supermicro’s quarterly revenue was in line with its own recently revised guidance.
Tuesday’s report marked the sixth consecutive quarter that Supermicro’s earnings and revenue have fallen short of analyst estimates, per Bloomberg data.
-
Stocks steady after premarket sell-off
US stocks recovered from earlier losses in premarket trading as the ADP payrolls report showed job growth in the private sector in October.
The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) were roughly flat at the market open as a sell-off in tech stocks eased. The Dow Jones Industrial Average (^DJI) rose 0.1%.
The market action comes as the US government shutdown enters its 36th day, making it the longest in the country’s history.
-
ADP: Private payrolls rebounded in October, with employers adding 42,000 jobs
Private employers added 42,000 jobs to the US economy in October, according to ADP’s private payrolls report, rebounding from an upwardly revised loss of 29,000 jobs in September.
Forecasters were expecting the economy to add 30,000 jobs during the month, according to S&P Global Market Intelligence.
“Private employers added jobs in October for the first time since July, but hiring was modest relative to what we reported earlier this year,” said ADP chief economist Nela Richardson. “Meanwhile, pay growth has been largely flat for more than a year, indicating that shifts in supply and demand are balanced.”
Job growth was led by gains in the trade/transportation/utilities sector (+47,000) and the education/health services sector (+26,000). The biggest job losses were seen in information services (-17,000), professional/business services (-15,000), and other services.
Wages rose 4.5% year over year, unchanged from the month before.
ADP’s private payroll report is likely to get more attention than usual as the government shutdown — which officially became the longest federal shutdown in US history on Wednesday — has created a data vacuum. The Bureau of Labor Statistics’ monthly jobs report, for instance, continues to be delayed during the stoppage.
-
Good morning. Here’s what’s happening today.
Economic data: MBA mortgage applications (week ended October 31); ADP employment change (October); S&P Global US services PMI (October final reading); S&P Global US composite PMI (October final reading); ISM services index (October); ISM services prices paid (October); ISM services new orders (October); ISM services employment (October)
Earnings calendar: Toyota (TM), Novo Nordisk (NVO), McDonald’s (MCD), AppLovin (APP), Qualcomm (QCOM), Arm Holdings (ARM), Robinhood (HOOD), DoorDash (DASH), Snap (SNAP), McKesson (MCK), Emerson Electric (EMR), Fortinet (FTNT), Sempra (SRE), Energy Transfer (ET), MetLife (MET), AllState (ALL), Cameco Corporation (CCJ), Fair Isaac (FICO), Humana (HUM), Targa Resources (TRGP), Fidelity (FIS), Iron Mountain (IRM), Atmos Energy (ATO), HubSpot (HUBS), Formula One Group (FWONK), Figma (FIG), Teva Pharmaceuticals (TEVA), IonQ (IONQ), Talen Energy (TLN), TKO Group (TKO), Performance Food Group (PFGC), Royal Gold (RGLD), Joby Aviation (JOBY), Duolingo (DUOL), Albemarle (ALB)
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump tariffs’ big test in Supreme Court arrives
Wall Street pros to see their biggest bonus bump since 2021
Musk’s $1 trillion pay fight to dominate Tesla shareholder meet
Palantir’s epic run-up gives the market a reason to sell
McDonald’s US sales beat, but earnings miss the mark
Novo Nordisk cuts FY profit guidance as sales slow
Toyota reports profit drop as Trump’s taxes hurt Japan automakers
China ends levies on US farm goods after fentanyl duties cut
Global chip selloff erases $500B in value as fears mount
Latest stock pullback shows how stretched this market has become
-
McDonald’s US sales top forecasts as it continues value push amid ‘challenging environment’
McDonald’s (MCD) stock rose modestly after the fast food chain reported better-than-expected same-store sales that topped forecasts for the second straight quarter. McDonald’s continues to lean into its value menu to win back customers in what the company calls a “challenging environment.”
Yahoo Finance’s Brooke DiPalma reports:
-
Premarket trending tickers: Pinterest, SMCI and Lumentum
Pinterest (PINS) stock fell more than 17% before the bell after the image-sharing platform announced that tariff related pressures and struggling to find new avenues for growth have dampened its forecast.
SMCI (SMCI) stock fell 9% before the bell after releasing its third quarter earnings on Tuesday, with its forecast falling below Wall Street expectations.
Lumentum Holdings Inc. (LITE) stock rose 15% in premarket trading on Wednesday after reporting third quarter earnings which beat Wall Street estimates.
-
Trump tariffs big test in Supreme Court kicks off today
Looking to experts for how the Supreme Court will rule on tariffs? They aren’t sure either, writes Yahoo Finance’s Ben Werschkul.
He reports:
-
Novo Nordisk lowers full-year profit guidance
Novo Nordisk (NVO, NOVO-B.CO) cut its forecasts for full-year profit and sales on Wednesday, as its new CEO drives a push to regain ground lost amid fierce competition in the weight-loss drug market.
US-listed shares in the Ozempic and Wegovy maker rose almost 3% in premarket as investors digested the Danish drugmaker’s quarterly earnings release.
Reuters reported:
-
Asian markets fall in response to tech sell-off
Asian markets fell in tandem with US gauges as the global market followed a tech sell-off trend. Investor appetite for sky-high AI spend appears to have hit a ceiling as fears of over-inflated AI valuations spread.
South Korea’s Kospi (^KS11) fell over 6% before pulling back to a 3% drop.
Japan’s benchmark, the Nikkei 225 (^N225) levelled off at losses of 2.8%
Hong Kong’s Hang Seng index (^HSI) slipped 0.5%.
The fall came following a day of heavy losses for major American gauges as AI tech darlings like Palantir fell despite solid earnings reports.
-
Gold falters around the $4000 mark
Gold (GC=F) continues to struggle around the $4,000 mark following a record-setting run, as a strong dollar, combined with the Fed’s rate cuts, has dampened haven demand.
Bloomberg reports:
