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postUS stocks were poised for further losses on Wednesday as techs continued to struggle, with the mood muted on a pivotal day for President Trump’s tariffs and the federal shutdown.
Futures on the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) fell roughly 0.2% and 0.3%, respectively. Contracts on the Dow Jones Industrial Average, (YM=F) which include fewer tech stocks, were little changed.
Markets are still weighed down by questions about stretched valuations for stocks behind the AI-fueled rally. On Tuesday, a sharp selloff in tech names drove a rough trading session that saw Wall Street gauges close deep in the red.
Fears of a stock bubble are beginning to mount as a global selloff in chip stocks wiped out $500 billion in value. AMD (AMD) could add more fuel to that fire, after the AI chipmaker’s earnings beat estimates but still underwhelmed, dragging the stock price lower.
Eyes are now on Qualcomm (QCOM) for more clues to the AI trade, with the chipmaker’s results slated for after market close. McDonald’s (MCD) report is another highlight on Wednesday’s docket, with Robinhood (HOOD) and Toyota (TM) also in the lineup.
Also muting the mood was the US shutdown, which is now the longest ever after entering its 36th day on Wednesday. Economic pain from the stoppage continues to mount, with the hit estimated at $15 billion a week, as Trump administration officials warn of potential “mass chaos” for air travelers.
Meanwhile, the shutdown continues to stall the release of government data on the economy, intensifying attention on private data reports. Markets will look to the ADP private payrolls report later on Wednesday for insight into the labor market, key to the Federal Reserve’s policy thinking. Updates on mortgage applications and ISM services activity are also on deck.
On the trade front, the Supreme Court begins hearing arguments on Wednesday in a case questioning Trump’s legal authority to impose his sweeping tariffs — a landmark test of presidential power. The justices’ eventual decision is likely to have significant consequences for the global economy.
LIVE 7 updates
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Good morning. Here’s what’s happening today.
Economic data: MBA mortgage applications (week ended October 31); ADP employment change (October); S&P Global US services PMI (October final reading); S&P Global US composite PMI (October final reading); ISM services index (October); ISM services prices paid (October); ISM services new orders (October); ISM services employment (October)
Earnings calendar: Toyota (TM), Novo Nordisk (NVO), McDonald’s (MCD), AppLovin (APP), Qualcomm (QCOM), Arm Holdings (ARM), Robinhood (HOOD), DoorDash (DASH), Snap (SNAP), McKesson (MCK), Emerson Electric (EMR), Fortinet (FTNT), Sempra (SRE), Energy Transfer (ET), MetLife (MET), AllState (ALL), Cameco Corporation (CCJ), Fair Isaac (FICO), Humana (HUM), Targa Resources (TRGP), Fidelity (FIS), Iron Mountain (IRM), Atmos Energy (ATO), HubSpot (HUBS), Formula One Group (FWONK), Figma (FIG), Teva Pharmaceuticals (TEVA), IonQ (IONQ), Talen Energy (TLN), TKO Group (TKO), Performance Food Group (PFGC), Royal Gold (RGLD), Joby Aviation (JOBY), Duolingo (DUOL), Albemarle (ALB)
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump tariffs’ big test in Supreme Court arrives
Wall Street pros to see their biggest bonus bump since 2021
Musk’s $1 trillion pay fight to dominate Tesla shareholder meet
Palantir’s epic run-up gives the market a reason to sell
McDonald’s US sales beat, but earnings miss the mark
Novo Nordisk cuts FY profit guidance as sales slow
Toyota reports profit drop as Trump’s taxes hurt Japan automakers
China ends levies on US farm goods after fentanyl duties cut
Global chip selloff erases $500B in value as fears mount
Latest stock pullback shows how stretched this market has become
Norway suspends wealth fund ethics rules to shield Big Tech
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McDonald’s US sales top forecasts as it continues value push amid ‘challenging environment’
McDonald’s (MCD) stock rose modestly after the fast food chain reported better-than-expected same-store sales that topped forecasts for the second straight quarter. McDonald’s continues to lean into its value menu to win back customers in what the company calls a “challenging environment.”
Yahoo Finance’s Brooke DiPalma reports:
Read more here.
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Premarket trending tickers: Pinterest, SMCI and Lumentum
Pinterest (PINS) stock fell more than 17% before the bell after the image-sharing platform announced that tariff related pressures and struggling to find new avenues for growth have dampened its forecast.
SMCI (SMCI) stock fell 9% before the bell after releasing its third quarter earnings on Tuesday, with its forecast falling below Wall Street expectations.
Lumentum Holdings Inc. (LITE) stock rose 15% in premarket trading on Wednesday after reporting third quarter earnings which beat Wall Street estimates.
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Trump tariffs big test in Supreme Court kicks off today
Looking to experts for how the Supreme Court will rule on tariffs? They aren’t sure either, writes Yahoo Finance’s Ben Werschkul.
He reports:
Read more here.
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Novo Nordisk lowers full-year profit guidance
Novo Nordisk (NVO, NOVO-B.CO) cut its forecasts for full-year profit and sales on Wednesday, as its new CEO drives a push to regain ground lost amid fierce competition in the weight-loss drug market.
US-listed shares in the Ozempic and Wegovy maker rose almost 3% in premarket as investors digested the Danish drugmaker’s quarterly earnings release.
Reuters reported:
Read more here.
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Asian markets fall in response to tech sell-off
Asian markets fell in tandem with US gauges as the global market followed a tech sell-off trend. Investor appetite for sky-high AI spend appears to have hit a ceiling as fears of over-inflated AI valuations spread.
South Korea’s Kospi (^KS11) fell over 6% before pulling back to a 3% drop.
Japan’s benchmark, the Nikkei 225 (^N225) levelled off at losses of 2.8%
Hong Kong’s Hang Seng index (^HSI) slipped 0.5%.
The fall came following a day of heavy losses for major American gauges as AI tech darlings like Palantir fell despite solid earnings reports.
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Gold falters around the $4000 mark
Gold (GC=F) continues to struggle around the $4,000 mark following a record-setting run, as a strong dollar, combined with the Fed’s rate cuts, has dampened haven demand.
Bloomberg reports:
Read more here.
