Overview
The U.S. stock market closed higher today. Investors took advantage of the slight corrections in the market, stepping in to buy after recent declines. Despite not witnessing a large influx of buyers, the market managed to rebound from the recent downward trend. The day's focus was on the Supreme Court hearing regarding former President Trump's tariff implementations.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
A Major News Story
The Supreme Court conducted a hearing to evaluate the legality of Trump's broad tariffs imposed under the International Emergency Economic Powers Act. The overall sentiment during the 2.5-hour hearing was skeptical, even amongst conservative justices who questioned the extensive use of emergency powers to justify billions in tariffs. Consequently, prediction markets saw a decrease in bets on the Supreme Court supporting Trump's tariffs. Additionally, October ADP private sector employment rose by 42,000, surpassing expectations and breaking a trend of previous declines. The services PMI also expanded at its fastest pace in eight months, helping to alleviate concerns about rising treasury yields. Semiconductor stocks, in particular, surged by 3%, leading the market's upward movement.
Tomorrow's Economic Indicators
| Time | Event |
|---|---|
| 20:30 | U.S. October Challenger Job Cuts Report |
| 20:30 | U.S. EIA Natural Gas Inventory |
| 22:00 | Federal Reserve Speeches |
A General Opinion
Experts remain divided in their opinions. UBS Global's Ulrike Hoffmann noted that a 1.5% correction is normal, though political uncertainty and changing investment sentiment could increase volatility. Meanwhile, Howard Rajahkshak of Brixdotcom expressed that although stocks remain at high valuations, there is no pressing reason for mass selling. Additionally, Jim Zeltzer from Global sees a rapid influx of funds into AI and data center sectors, raising valuations and risks. Overall, while concerns about valuations persist, there is optimism about sector-specific growth.
