United States benchmark averages advanced on Wednesday (Thursday AEDT), after Supreme Court justices questioned President Donald Trump’s authority to impose tariffs under emergency powers, while a rebound in artificial intelligence-related shares also boosted sentiment.
The Dow Jones Industrial Average gained 225.8 points or 0.5% to close at 47,311.0, the S&P 500 gained 24.8 points or 0.4% to 6,796.3, and the Nasdaq Composite advanced 151.2 points or 0.7% to settle at 23,499.8.
Among individual stocks, McDonald’s rose 2.2% after reporting better-than-expected same-store sales, helped by affordable meal promotions that boosted customer demand.
Johnson Controls jumped 8.8% after issuing stronger-than-expected profit guidance for fiscal 2026, and Amgen surged 7.8% on a quarterly earnings beat.
By contrast, health insurer Humana slumped 6% after weaker-than-expected third-quarter results, while Match Group rose 5.2% even as its revenue forecast fell short of estimates.
The Supreme Court hearing, which probed the legality of Trump’s sweeping tariff powers under the International Emergency Economic Powers Act (IEEPA), appeared to tilt against the administration’s argument.
Both conservative and liberal justices pressed Solicitor General D. John Sauer on the justification for the duties, prompting traders to scale back expectations that the Court would uphold the tariffs.
The possibility of tariff relief lifted shares in trade-sensitive sectors. Ford added 2.5%, General Motors gained 2.8%, while construction and machinery giant Caterpillar added 3.9%.
AI-related technology stocks also rebounded after sharp losses earlier in the week. Advanced Micro Devices (AMD) reversed an early decline to finish 2.5% higher after posting stronger-than-expected quarterly earnings and revenue.
Although concerns lingered about its margin outlook, the chipmaker’s results helped lift sentiment across the AI sector.
Broadcom climbed 2%, Micron Technology surged 8.9%, and Oracle gained 0.9%.
The rally followed a sell-off on Tuesday after Palantir tumbled 8% on valuation concerns, while Super Micro Computer and Arista Networks fell 11% and 9%, respectively, on disappointing results.
Economic data on Wednesday painted a mixed but resilient picture of the U.S. economy. ADP reported private payroll growth of 42,000 in October, topping forecasts, while the ISM services index also surprised to the upside.
The solid data, however, drove U.S. Treasury yields higher, tempering optimism about further Federal Reserve rate cuts, as the yield on the 10-year Treasury note rose 1.9% to 4.159%, while the 2-year yield gained 1.6% to 3.634%.
