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Indexes up: Dow 0.62%, S&P 500 0.70%, Nasdaq 0.91%

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SMCI falls after missing Q1 revenue, profit estimates

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Johnson Controls ( JCI ) jumps after upbeat 2026 profit forecast

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U.S. economy adds more private jobs in October than

expected

(Updates prices, analyst comment)

By Twesha Dikshit and Purvi Agarwal

Nov 5 (Reuters) - Wall Street's main indexes inched

higher on Wednesday, after a stronger-than-expected private

payrolls report and an ongoing court hearing on U.S. tariffs

buoyed investor sentiment, while technology stocks steadied

following a sharp sell-off.

The ADP employment report showed U.S. private payrolls

rebounded sharply in October, while the Institute for Supply

Management reported services sector activity picked up. The

datasets did little to alter expectations around the Federal

Reserve's monetary policy path.

Meanwhile, the lawyer representing U.S. President Donald

Trump's administration faced tough questions from the Supreme

Court over the legality of the sweeping tariffs.

Odds of the top court ruling in favor of the tariffs dropped

to 24% from 38% before the hearing commenced, as per betting

website Polymarket.

"The market might be thinking that if Trump loses the tariff

battle, it might indicate that inflation could begin to come

down... that opens the door to a series of rate cuts," said

Peter Cardillo, chief market economist at Spartan Capital

Securities.

Tech stocks recovered, with Nvidia ( NVDA ) gaining 1.3% and

Broadcom ( AVGO ) rising 2.8%. The broader information

technology sector was up 0.6%, after falling over 2%

in the previous session.

The Nasdaq and S&P 500 had marked their biggest one-day

percentage drop in nearly a month on Tuesday, after warnings of

a market pullback by U.S. bank CEOs and bearish views from hedge

funds on the AI trade prompted a tech-led sell-off.

Advanced Micro Devices ( AMD ), which announced an upbeat

forecast on Tuesday, pared premarket declines.

"The momentum rally has a high retail investor aspect to it

this cycle and the buy-the-dip mentality is a prominent

feature," said Eric Teal, Comerica Wealth Management's chief

investment officer.

The benchmark S&P 500 was recently trading at 23.3

times forward earnings, which is its highest since the start of

the century and well above its 20-year average of 16, according

to data compiled by LSEG.

At 12:27 p.m. ET, the Dow Jones Industrial Average

rose 291.67 points, or 0.62%, to 47,376.91, the S&P 500

gained 47.73 points, or 0.70%, to 6,819.28 and the Nasdaq

Composite gained 213.41 points, or 0.91%, to 23,562.04.

Energy stocks gained 1.2%. Targa Resources ( TRGP )

was up 6.2% after beating profit estimates for the third

quarter.

Amgen ( AMGN ) and McDonald's gained 7.4% and 2.3%,

respectively, after their quarterly results, lifting the Dow.

There was little reaction in stocks after democratic

socialist Zohran Mamdani was elected as mayor of New York City.

Investors and the Fed will also focus on more private data

with the U.S. government shutdown becoming the longest in

history.

Bank of America ( BAC ) slipped 1.4% even as the

second-largest lender in the U.S. raised its profitability

target.

Eli Lilly ( LLY ) gained 4.8%. The company's Danish rival

Novo Nordisk lowered its fiscal-year profit and sales forecast.

Health insurer Humana slipped almost 8% after its

third-quarter results, while Johnson Controls ( JCI ) was among

the biggest gainers on the S&P 500 after it forecast 2026 profit

above expectations.

Super Micro Computer ( SMCI ) slumped 9.6% after the server

maker posted quarterly profit and revenue below Wall Street

estimates.

Advancing issues outnumbered decliners by a 2.39-to-1 ratio

on the NYSE and by a 2.04-to-1 ratio on the Nasdaq.

The S&P 500 posted 18 new 52-week highs and 14 new lows,

while the Nasdaq Composite recorded 57 new highs and 142 new

lows.