Wall Street Holds Steady as Earnings Roll In, Tariff Ruling Looms/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks opened mostly flat Wednesday as investors digested mixed corporate earnings and braced for a critical Supreme Court ruling on President Trump’s tariff authority. Tech shares led modest declines amid AI valuation concerns, while McDonald’s and other consumer brands posted stronger-than-expected results. Global markets followed Wall Street’s cautious tone as volatility remained elevated.
Quick Look: Wall Street Today
- Markets Mixed:
- S&P 500: Flat
- Dow Jones: +0.2%
- Nasdaq: -0.1%
Tech stocks dip while broader markets hold steady as earnings continue.
- Earnings Highlights:
- Axon: -20% after weak profit outlook
- McDonald’s: +2.5% boosted by return of Snack Wraps
- Palantir & AMD: Drop despite strong Q3 results
- Legal Watch:
SCOTUS weighs Trump’s emergency tariffs—case could reshape presidential economic powers. - Global Markets:
- Asia: Tokyo -2.5%, Seoul -2.9%, Shanghai +0.2%
- Europe: Mostly lower
- Oil: Brent at $64.27, WTI at $60.37
- Gold: +0.5% to $3,978
- Bitcoin: +1% to $102,639
- Market Sentiment:
Tech selloff continues amid AI overvaluation concerns. Analysts warn rally may be cooling.
Wall Street Opens Steady as Investors Weigh Corporate Earnings and Tariff Uncertainty
Deep Look
NEW YORK — November 5, 2025 — U.S. stocks opened steady Wednesday morning as markets digested a wave of corporate earnings while awaiting a high-stakes Supreme Court ruling on the legality of President Donald Trump’s unilateral tariffs. While major indexes saw only modest early movement, volatility loomed due to tech sector weakness and legal uncertainty over the president’s trade powers.
Markets Open Mixed Amid Corporate Earnings Surge
- The S&P 500 was little changed in early trading.
- The Dow Jones Industrial Average rose 73 points (0.2%).
- The Nasdaq Composite slipped 0.1%, led lower by continued tech sector declines.
Investors are cautiously reviewing third-quarter earnings results, with market sentiment tempered by global economic concerns and regulatory risks.
Big Movers: Corporate Winners and Losers
- Axon Enterprise, maker of Taser weapons, plunged nearly 20% after issuing profit guidance that fell short of Wall Street expectations.
- McDonald’s rose 2.5% following strong quarterly sales, aided by the reintroduction of its popular Snack Wraps.
- Palantir Technologies dropped 1.9% premarket despite reporting solid results, continuing a two-day slide.
- Advanced Micro Devices (AMD) fell 4.3%, even after beating earnings estimates, as AI sector momentum showed signs of cooling.
Tech Sector Wobbles Amid AI Fatigue
Technology stocks, which have fueled most of 2025’s gains, showed significant weakness for a second straight day. Analysts point to an overdue correction in AI-heavy valuations.
“The rally that began in April is finally feeling its age. What we are seeing wasn’t just a dip; it was a full-scale reality check,” said Stephen Innes of SPI Asset Management.
“It felt more like the oxygen suddenly thinning at the top of a mountain that everyone assumed had no summit.”
AI-linked names like Palantir and chipmakers such as AMD and Nvidia are facing increasing scrutiny from investors wary of inflated expectations.
Supreme Court to Rule on Trump Tariffs
In Washington, the Supreme Court is hearing arguments in a critical case that could define presidential power over international trade. The case challenges Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs without congressional approval.
- Trump argues the law gives the president authority to impose tariffs in emergencies.
- Opponents, including small businesses and legal scholars, contend the law doesn’t authorize tariffs and that only Congress has that power.
- The outcome could impact trillions in global trade and reframe executive authority.
Trump has warned that a ruling against his administration could be “catastrophic” for the U.S. economy. Business groups say uncertainty over trade rules is pushing companies toward bankruptcy.
Global Markets Mixed as Wall Street Ripples Abroad
Asia and Europe mirrored Wall Street’s hesitancy, with sharp swings in technology and auto sectors.
Asia:
- Nikkei 225 (Tokyo) fell 2.5% after an earlier near-5% slide.
- SoftBank tumbled 10% on AI concerns.
- Toyota lost 3.7% after reporting a profit dip and facing new U.S. tariffs.
- South Korea’s Kospi dropped 2.9%.
- Samsung Electronics slid 4.1%.
- SK Hynix lost 1.2%.
- Shanghai Composite rose 0.2%.
- Hong Kong’s Hang Seng declined 0.1%.
Europe:
- Germany’s DAX fell 0.3%.
- France’s CAC 40 slipped 0.1%.
- UK’s FTSE 100 inched up 0.2%.
Global traders remain on edge due to ongoing tariff litigation, corporate earnings concerns, and a perceived overextension in tech valuations.
Commodities and Currency Movements
- Crude Oil (WTI) fell $0.19 to $60.37 per barrel.
- Brent Crude dropped $0.16 to $64.27.
- Gold rose 0.5% to $3,978/oz, amid economic uncertainty.
- Bitcoin gained 1% to $102,639, still down 18% from its all-time high.
Currency:
- U.S. Dollar strengthened slightly to 153.72 yen.
- Euro ticked up to $1.1494.
Market Outlook: Cautious Optimism with Risk Ahead
Despite modest gains in some sectors, the market faces multiple headwinds:
- Tech stock fatigue, especially among AI-heavy companies.
- Uncertainty surrounding U.S. trade policy and executive authority.
- A fragile global growth environment.
With earnings season continuing and legal rulings pending, volatility may remain elevated.
In Summary:
Wall Street is treading water amid mixed earnings, a potential tech correction, and a pivotal legal battle over presidential power. Investors are watching closely for economic indicators and policy signals that could shape the final stretch of 2025.
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