Stocks traded higher on Wednesday, gaining back some losses from Tuesday’s sell-off as new labor data hinted at a rebound in private-sector hiring and optimism grew over potential policy clarity in Washington.
The S&P 500 (GSPC) rose 0.8%, while the Nasdaq Composite (IXIC) jumped 1.1% as tech stocks regained footing. The Dow Jones Industrial Average (DJI) added 0.6%, with all three major indices rising after the ADP report showed private employment rising by 42,000 in October — a sharp reversal from September’s contraction.
Market Movers:
- Rivian (RIVN) +11% — Shares surged after third-quarter results beat expectations, with revenue of $1.56 billion up nearly 80% year-over-year. The company reaffirmed guidance and said its mid-size R2 SUV remains on track for a 2026 launch, boosting confidence in its turnaround.
- Digital Turbine (APPS) +35% — The software firm soared after reporting better-than-expected quarterly results and raising its full-year outlook. Management highlighted strong momentum across core mobile and ad tech units, with improved profitability driving renewed investor interest.
- Unity Software (U) +7% — Shares rose after the company topped Q3 estimates and projected stronger Q4 growth driven by expanding adoption of its Vector AI platform. The company lifted revenue guidance to $480–$490 million, signaling strengthening demand for real-time content tools.
- Pinterest (PINS) -20% — Shares plunged after disappointing Q3 guidance overshadowed revenue growth and user gains. The company’s Q4 revenue forecast of $1.31–$1.34 billion came in just below consensus, raising investor concerns about slowing advertiser demand.
- Super Micro Computer (SMCI) -7% — The AI server maker slid after its fiscal Q1 results fell short of expectations. While management projected a massive revenue jump next quarter to $10–$11 billion, investors focused on weaker near-term earnings tied to order timing.
Jobs Data Fuels Sentiment
Markets breathed a sigh of relief as the ADP payrolls report showed private-sector employment growth returning after last month’s contraction. The 42,000-job gain topped expectations and eased concerns that hiring momentum had stalled. Economists say the uptick could help stabilize sentiment amid broader macro uncertainty, particularly as the Federal Reserve weighs another potential rate cut in December.
Stephen Miran, the Fed’s newest voting member, told Yahoo Finance he favors another cut, calling it a “reasonable action” given cooling inflation and steady labor trends. His comments added to hopes that monetary policy could remain supportive through year-end despite political and fiscal turbulence in Washington.
Tariffs, Shutdown, and Supreme Court Drama
Investors also watched for developments from the Supreme Court, where justices heard arguments on President Trump’s sweeping tariff powers — a pivotal test of executive authority. Several conservative justices expressed skepticism about the broad use of tariff policy, raising uncertainty about the administration’s trade stance.
Meanwhile, the government shutdown entered its 36th day, the longest in history, with the economic toll now estimated at $15 billion per week. Treasury officials warned the extended stoppage could cause “mass chaos” for air travel and further delay key data releases, complicating the Fed’s policy path.
Earnings in Focus
Earnings continued to drive single-stock moves across the market. Beyond Rivian’s strong showing, investors awaited results from Qualcomm (QCOM) after the bell for fresh insight into the AI-chip cycle. McDonald’s (MCD) also delivered a U.S. sales beat but warned of “consumer headwinds,” signaling that even strong brands aren’t immune to spending fatigue.
Despite lingering concerns about elevated valuations and policy risks, traders appeared willing to step back into equities after Tuesday’s rout. Analysts noted that dips in high-quality tech names attracted buyers, while small caps and cyclicals also showed signs of life.
Looking Ahead
With the ADP data renewing optimism and the Fed signaling a potential December cut, investors are watching closely for Friday’s jobs report — if it’s released amid the shutdown. Key catalysts over the next 48 hours include Qualcomm’s earnings, continued Supreme Court arguments, and updates from Congress on a potential deal to reopen the government. Momentum remains fragile, but for now, Wall Street seems ready to breathe again after a volatile start to November.