Stock Market Today: Live Updates

U.S. stocks rose on Wednesday as semiconductor makers advanced micro device Names in the artificial intelligence industry, such as , have bounced back from the valuation concerns that plagued the market a day earlier. The Supreme Court’s harsh questioning of President Donald Trump’s tariffs also raised hopes that some tariffs might be lifted.

of Dow Jones Industrial Average It rose by 313 points (0.7%). of S&P500 rose 0.8%, while the Nasdaq Composite rose 1.2%.

AMD started lower but eventually turned positive, with other AI stocks also rising. The company’s third-quarter profits and sales beat analysts’ expectations, but traders were initially concerned about the outlook for profit margins. The stock price was recently up 2%.

Alongside AMD, other companies include: broadcom and micron technology rallied, reversing losses in the previous session and rising about 3% and 8%, respectively. Key players in AI Nvidia and oracle It rebounded from Tuesday’s decline and rose again on Wednesday.

Investors were watching Wednesday for Supreme Court arguments on President Donald Trump’s tariffs. The question is whether the President had the authority to impose such an obligation under the International Emergency Economic Powers Act (IEEPA). The high court justices focused their questions on the legality of the broad tariffs, with both conservative and liberal lawmakers questioning Attorney General John Sauer about the legality of the Trump administration’s tariffs.

Prediction market traders have reduced their bets that the Supreme Court will uphold President Trump’s tariffs, given the court’s apparent skepticism. Meanwhile, the Detroit automaker’s stock price is ford and general motorstwo tariff risk bellwethers each gain 3%, construction and mining equipment manufacturers caterpillar Increased by 4%.

“We continue to see these kinds of discussions about how effective they are,” said Phil Brancato, chief market strategist at Ozaiq. “We won’t know the impact of the tariffs, their resolution, the impact on prices until the first quarter of next year, so that’s going to fuel this kind of disillusionment.”

Combating concerns

AI stock movements on Wednesday Palantir Shares fell about 8% on Tuesday as investors worried that valuations for the software company and the broader AI theme were no longer sustainable. After all, Palantir is trading at more than 200 times forward earnings. The name extended its losses on Wednesday, falling 2%. super micro deviceanother AI-related stock, fell 8% on disappointing first-quarter results and its AI peers. Arista Networks Shares fell 7% following the latest quarterly results.

“There’s just no breadth in the market,” Brancato said. “There are winners and losers in the AI ​​space, and valuations are certainly inflated, so I think we need to be very cautious about where we bet on AI going forward.”

“AI trade is simply losing momentum,” he added. “That’s the problem we’re facing and that’s why we’re in this flat market.”

Stock investors received some encouraging data on the economy on Wednesday, with better-than-expected ADP payroll data and better-than-expected ISM services economic data. But while strong economic data has pushed yields higher, some investors may not like this amid growing expectations that the U.S. Federal Reserve will cut interest rates for the third time in December.

“This morning’s ADP numbers suggest we are still in a strong labor market. I think we sometimes forget that a strong labor market suggests we are not in a recessionary environment, and we are certainly not heading into a recession,” Brancato said. “This is a very bullish signal about the current state of the U.S. economy, but other than the extended valuations, we’re in a very strange time, and while I don’t see the market going much higher without a significant catalyst, I also don’t see a significant correction coming.”