US stocks close higher as Supreme Court questions tariffs, job market shows recovery

ISTANBUL

US stocks closed midweek higher, as the private sector employment recovered from weakness in recent months and Supreme Court justices voiced skepticism on the legality of President Donald Trump’s tariffs.

The Dow Jones Industrial Average rose 0.48%, or 225.76 points, to close Wednesday at 47,311.

The Nasdaq climbed 0.65%, or 151.16 points, to 23,499.80, while the S&P 500 ascended 0.37%, or 24.74 points, to 6,796.29.

The Volatility Index (VIX), also known as the “fear index,” dropped 5.21% to 18.01.

Investors listened as the Supreme Court heard arguments on sweeping US tariffs under Trump on Wednesday. The question was whether the International Emergency Economic Powers Act (IEEPA), gave the president power to enforce such obligations.

Both conservative and liberal justices on the high court questioned Solicitor General D. John Sauer about the Trump administration’s rationale for imposing the tariffs, raising doubts on the legality of the broad tariffs.

After the hearing, shares of two tariff-risked Detroit automakers Ford and General Motors, surged more than 2% each.

On the data side, the ADP’s private sector nonfarm employment figure rose 42,000 in September, beating market expectations of a 32,000 gain.

Analysts noted that the recovery in private sector employment in October somewhat alleviated concerns about a weakening labor market. While the data tempered expectations for an interest rate cut, it also reflected a strong economy.

Meanwhile, AMD saw its shares rise 2.5%, even after it started the day negative, boosting other AI stocks along the way. Although traders were initially concerned about the AI and tech sectors’ margin prospects, the company reported third-quarter earnings and revenue above analyst estimates.

Other chipmakers such as Broadcom and Micron Technology also saw increases Wednesday, erasing their losses from Tuesday and rising by about 2% and 8.9%, respectively.

On the other hand, Pinterest shares fell 21.8% after the company’s third-quarter earnings per share missed expectations and fourth-quarter earnings fell short of estimates.

Meanwhile, the US is going through its longest government shutdown in history, causing delays in economic data flow. Investors looking for additional clues about the state of the economy are closely monitoring alternative indicators.

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