US markets finished higher on Wednesday, buoyed by optimism that some of former President Donald Trump’s tariffs could be rolled back after tough questioning from the Supreme Court. Gains in chipmakers and other artificial intelligence names also helped the market recover from valuation-driven losses in the prior session.
The Dow Jones Industrial Average rose 225 points, or 0.48%, to 47,311. The S&P 500 climbed 0.37% to 6,796, and the Nasdaq Composite advanced 0.65% to 23,499.
AI stocks bounce after Tuesday’s sell-off
Chipmaker Advanced Micro Devices turned positive after opening lower, ending up more than 2% on strong third-quarter earnings and revenue. Broadcom added 2%, and Micron Technology surged about 9%. Oracle also rebounded after Tuesday’s losses.
Palantir extended its two-day decline, falling 1% after an 8% drop on Tuesday, as investors questioned lofty AI valuations, Palantir trades at more than 200 times forward earnings. Super Micro Devices and Arista Networks also fell sharply, down 11% and 8%, respectively.
Economic data supports strength
Economic reports also showed resilience. ADP payrolls data and a strong ISM services index signalled continued expansion in the labour market. The US 10-year Treasury yield rose to 4.16% following the data, suggesting confidence in economic momentum but tempering hopes for further rate cuts in December.
ASX to open higher
Australian shares are set to open stronger, with ASX 200 futures up 66 points, or 0.75%, to 8871. Upcoming local highlights include NAB’s full-year results and trade data for September, while major annual meetings are scheduled for Breville Group, NIB Holdings, and Seven West Media.
