Caution Prevails Ahead of Possible Market Pullback, Supreme Court to Hear Arguments On Legality of Trump's Tariffs

Barry Adams
05 Nov, 2025
New York City

Popular benchmark indexes attempted to rebound on Wednesday, and investors debated the future path of mega-cap tech stocks. 

The S&P 500 index increased 0.2%, and the tech-heavy Nasdaq Composite advanced 0.4% on Wednesday following sharp losses in the previous trading session. 

Market participants are increasingly focused on a possible drawdown of as much as 15% amid a list of growing worries, including the high valuation of AI-linked tech stocks, circular AI trade, and the uncertainty surrounding the Fed's December rate cut.  

The U.S. government's prolonged shutdown is also keeping market anxieties at elevated levels, as lawmakers show no interest in compromise in the immediate future. 

In addition, investors are worried that the US-China trade tensions could resurface if the erratic U.S. president changes his mind and imposes additional duties on Chinese goods.  

 

U.S. Stock Movers 

Advanced Micro Devices declined 4.4% to $239.76 despite the company's third-quarter results surpassing market expectations. 

Revenue in the third quarter soared 36% to $9.2 billion from $6.8 billion, net income jumped 61% to $1.2 billion from $771 million, and diluted earnings per share advanced 60% to 75 cents from 47 cents a year ago. 

Data center segment revenue jumped 22% to $4.3 billion, client and gaming segment revenue surged 73% to $4.0 billion, and embedded segment revenue decreased 8% to $857 million. 

The company guided fourth-quarter revenue of $9.6 billion with a band of $300 million, representing an annual increase of 25% and a sequential rise of 4% when measured from the midpoint of the revenue range. 

AMD said that the fourth-quarter revenue estimate does not include advanced chip MI308 shipments to China because of the uncertainty surrounding the U.S. trade policy and export controls. 

The advanced chipmaker guided a non-GAAP gross margin of 54.5% in the period.

Super Micro Computer Micro dropped 9.2% to $43.11 after the company reported weaker-than-expected earnings in the fiscal first quarter ending in September. 

Revenue in the quarter declined to $5.0 billion from $5.9 billion, net income plunged to $168 million from $424 million, and diluted earnings per share dropped to 26 cents from 67 cents a year ago. 

Moreover, the company's fiscal year 2026 revenue of $36 billion fell short of market expectations. 

The company estimated fiscal second quarter net sales between $10.0 billion and $11.0 billion, diluted net income per share between 37 cents and 45 cents, and non-GAAP earnings per share between 46 cents and 54 cents. 

Pinterest Inc. plunged 17.7% to $27.10 after the company's third-quarter results disappointed investors. 

Revenue increased 17% to $1.1 billion from $898 million, net income jumped more than threefold to $92 million from $30 million, and diluted earnings per share advanced to 13 cents from 4 cents a year ago.

The company estimated fourth-quarter revenue to range between $1.31 billion and $1.34 billion, representing an annual increase between 14% and 16%. 

The image-sharing platform estimated adjusted operating income between $533 million and $558 million in the period.