Stock Indices Recover Following Sharp Sell-Off on Tuesday

Group 1: Market Overview - The markets are anticipating oral arguments at the Supreme Court regarding the legality of President Trump's reciprocal tariffs, with a ruling expected by late this year or early 2026 [1] - The markets are currently pricing in a 68% chance of a -25 basis point rate cut at the next FOMC meeting on December 9-10 [2] - The US Treasury announced $125 billion in sales of T-notes and T-bonds for the upcoming quarterly refunding, aligning with expectations [3] Group 2: Corporate Earnings - Q3 corporate earnings season is strong, with 136 S&P 500 companies reporting this week; 80% of those have beaten forecasts, indicating the best quarter since 2021 [5] - However, Q3 profits are expected to rise by only +7.2% year-over-year, the smallest increase in two years, while sales growth is projected to slow to +5.9% year-over-year [5] Group 3: Stock Movements - Weaker-than-expected earnings are impacting technology stocks, with Super Micro Computer down more than -8% [4] - Axon Enterprise is down more than -17% after reporting Q3 adjusted EPS of $1.17, below the consensus of $1.51 [11] - Pinterest is down more than -20% after forecasting Q4 revenue of $1.31 billion to $1.34 billion, weaker than the consensus of $1.34 billion [11] Group 4: Economic Indicators - The US ADP employment change for October rose by +42,000, exceeding expectations of +30,000, which eased some economic concerns [2] - The ongoing US government shutdown, now the longest in history, is negatively affecting market sentiment and the economy [6]