MARKET SNAPSHOT

Tech stocks led U.S. markets higher. Treasury yields rose after economic data. Oil futures fell after a large weekly increase in U.S. crude inventories. Gold rose, now up four of the past six sessions. The U.S. dollar weakened.

MARKET WRAPS

EQUITIES

Tech stocks led markets higher on Wednesday, lifted by strong earnings and dip-buying in artificial-intelligence shares.

The Nasdaq Composite rose 0.6%, recovering some ground after doubts about the AI trade sent the tech-heavy index to its worst day in weeks.

Exuberance about AI has helped power the recent run to records, but intermittent setbacks have left investors questioning whether lofty valuations and massive outlays are justified. In recent days, investors have been unsettled by outsize spending plans laid out by companies such as Meta Platforms.

The S&P 500 gained 0.4%, while the Dow Jones Industrial Average added 0.5%.

Chip makers rebounded, with Advanced Micro Devices shares rising 2.3% after the chip designer reported soaring sales and profit. Broadcom climbed 2% and Qualcomm gained 4%.

Trade-sensitive stocks gained ground after Supreme Court justices appeared skeptical of President Trump's tariffs. Trade restrictions have dragged on markets since April's turmoil. General Motors gained 2.9%. Stellantis rose 1.9%. American Eagle Outfitters added 4.9% and Williams-Sonoma climbed 2.6%.

Earlier Wednesday, markets in Asia ended mixed.

In mainland China, shares turned positive after Beijing said it will suspend some tariffs on U.S. imports, including additional duties on agricultural products, as part of a trade truce reached at the Trump-Xi summit last month building expectations of a continued engagement between the major trading partners over tariffs and trade.

China's benchmark Shanghai Composite Index gained 0.2%, the Shenzhen Composite Index added 0.5%, and the ChiNext Price Index rose 1%.

Hong Kong's Hang Seng Index declined 0.1%.

Japan's Nikkei Stock Average fell 2.5%.

In Australia, the S&P/ASX 200 Benchmark Index slipped 0.1%.

New Zealand's S&P/NZX 50 Index rose 0.1%.

COMMODITIES

Oil futures posted back-to-back losses with a large weekly increase in U.S. crude inventories adding to downside pressure in a market concerned about weaker demand and oversupply.

While geopolitical risks remain and could reverse the downward trend, the diminishing impact of U.S. sanctions on Russian oil companies has reduced supply-side tension, "a factor that had previously been bullish, " said Antonio Di Giacomo of XS.com. "With that effect fading, the crude oil market loses one of the supports that had fueled expectations of tighter supply."

WTI settled down 1.6% at $59.60 a barrel and Brent fell 1.4% to $63.52.

Front-month Comex gold for November delivery gained 0.8% to $3980.30 a troy ounce -- up four of the past six sessions.

TODAY'S TOP HEADLINES

U.S. Private Sector Added 42,000 Jobs in October, Says Payroll Processor

American businesses increased their hiring in October after two straight months of declines, a positive sign in a shaky labor market, new data from ADP show.

The U.S. added 42,000 private-sector jobs in October, the payroll-processing giant said Wednesday, topping expectations for 22,000 more jobs among analysts polled by The Wall Street Journal.

This marked a rebound from a revised loss of 29,000 in September and a slight decline in August.

U.S. Services-Sector Activity Accelerates at Fastest Pace Since February

U.S. services-sector activity returned to growth, as new orders accelerated despite concerns among firms surrounding the government shutdown and tariffs, a monthly survey said Wednesday.

The Institute for Supply Management's purchasing managers index for services providers climbed to 52.4 in October from 50.0 in September, reaching its highest point since February. That meant it moved above the no-change mark after September's one-month stagnation. Economists polled by The Wall Street Journal expected it at a lower 50.5.

The index for new orders rose to its highest level since October 2024, while the business activity index also expanded. Employment contracted, but not as sharply as in September, the survey said.

Supreme Court Grills Trump Admin. What the Hearing Means for Tariffs.

President Donald Trump's sweeping tariffs appear at least somewhat vulnerable to being struck down, after some of the Supreme Court's conservative justices probed the Trump administration's views of the powers underlying the levies in oral arguments Wednesday.

Over nearly three hours, the justices parsed the text of the International Emergency Economic Powers Act, which Trump has used to impose levies on America's trading partners, and whether Trump had improperly seized Congress' taxation power under the U.S. Constitution for himself.

Investors in Polymarket judged that the arguments went poorly for the government and Solicitor General D. John Sauer, who argued the case for the government. Before the arguments started, the betting market gave the government a 36% chance of winning its case. By the end of the arguments, that had faded to about 30%.

Qualcomm Stock Slides After Earnings Beat

Shares of Qualcomm were sliding in late trading on Wednesday despite strong results from the chip maker.

The company reported adjusted earnings of $3.00 a share in its fiscal fourth quarter, versus Wall Street estimates for $2.87. Revenue came in at $11.27 billion, surpassing the $10.77 billion consensus estimate, according to FactSet.

Shares of Qualcomm were down 3.0% on the news.

OpenAI Isn't Yet Working Toward an IPO, CFO Says

OpenAI Chief Financial Officer Sarah Friar said that an IPO is "not on the cards" in the near term, and said the company hopes the federal government might backstop the financing of future data-center deals.

Speaking at The Wall Street Journal's Tech Live conference, Friar threw a dose of cold water on what could become one of the largest public listings in history. She said the AI giant's conversion to a new structure doesn't portend an imminent public offering as the company prioritizes growth and R&D over profitability.

"IPO is not on the cards right now," Friar said. "We are continuing to get the company into a state of constantly stepping up into the scale we are at, so I don't want to get wrapped around an IPO axle."

McDonald's Says Deals Are Delivering Sales

McDonald's said its big push into value meals is paying off at a time when more consumers are feeling economic pressure.

The Chicago-based burger giant said sales for its most recent quarter climbed after it boosted spending on value meals, new products and marketing, part of the Golden Arches' broader effort to win back cost-conscious eaters.

"We continue to remain cautious about the health of the consumer," Chief Executive Chris Kempczinski said during an investor call.