Tech Stocks Rebound as S&P 500 Rises Ahead of Trump IEEPA Tariff Trial

U.S. stocks climbed Wednesday, driven by renewed interest in technology shares as the S&P 500 gained 0.4%, the Dow Jones Industrial Average rose 0.5%, and the NASDAQ Composite advanced 0.7%. Investors piled into major tech names following recent pullbacks, even as the Supreme Court began hearings on former President Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs.

Advanced Micro Devices (NASDAQ: AMD) helped lead the rebound, cutting early losses to trade more than 2% higher after reporting strong sales and profit growth from its AI chip division. In contrast, Pinterest (NYSE: PINS) plunged after issuing weak revenue guidance, raising concerns about a slowdown in digital advertising. Among other notable movers, McDonald’s (NYSE: MCD) gained on stronger-than-expected U.S. same-store sales, while Novo Nordisk (NYSE: NVO) slipped 1% after trimming its full-year outlook. Humana (NYSE: HUM) dropped sharply following disappointing earnings and a reduced profit forecast due to rising medical costs.

Despite worries about overvalued tech stocks, earnings season has largely impressed — roughly 82% of the 360 S&P 500 companies reporting so far have beaten Wall Street expectations, according to FactSet. Still, analysts warn that the rally driven by the “Magnificent Seven” tech giants could be nearing exhaustion. Sean Peche of Ranmore Fund Management cautioned that “lofty valuations” make strong long-term returns unlikely.

On the economic front, the ADP employment report showed private payrolls rising by 42,000 in October, signaling labor market resilience amid ongoing uncertainty. Meanwhile, as Trump’s tariff powers face scrutiny in the Supreme Court, early reactions suggest skepticism toward executive authority under the IEEPA. A ruling against Trump could force the U.S. to repay roughly $90 billion in tariff revenue — a decision with far-reaching implications for trade and economic policy.