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Attorney Neal Katyal, in response to a question from Thomas, distinguishes between embargos, allowed by the law, and tariffs, which he says are not.

“Embargos stop the shipment, tariffs start the tax bill,” Katyal said. He was solicitor general in the Obama administration, on an acting basis.

At a time when every dip in stocks is perceived as an opportunity, buyers emerged after a brief pullback led by some of the biggest winners of the artificial-intelligence boom. Bitcoin rallied. Bonds fell.

While Wall Street didn’t see a buying stampede, equities were able to bounce after a slide that underscored worries over how stretched the market has become and how sensitive it is to unfavourable news. Chipmakers, which bore the brunt of the recent selling, led gains on Wednesday.

Bonds fell after data showed US services activity expanded in October at the fastest pace in eight months on a swift upturn in the growth of new orders. Meantime, employment at US companies increased, signalling some stabilisation in the job market.

US Supreme Court justices questioned President Donald Trump’s global tariffs, as arguments began in a case that could undercut his signature economic policy.

Justices, including John Roberts and Amy Coney Barrett, pressed US Solicitor General D. John Sauer on his contention that a 1977 law designed for emergency situations gives Trump the authority to collect tens of billions of dollars in tariffs a month.

“The vehicle is imposition of taxes on Americans, and that has always been the core power of Congress,” Roberts said.

The questioning came early on in a session likely to last more than two hours, and it didn’t give a clear indication of how the court will rule. The justices may have equally tough questions when the tariff challengers make their case in the second half of the argument.

Justice Neil Gorsuch, a Trump appointee, has questions about both major questions and nondelegation. He is asking Sauer to provide limits on the broadest reading of the administration’s arguments in favour of tariffs.

Sauer agreed that another, very different president would have the authority to declare climate change an emergency and impose tariffs to deal with it.

McDonald’s Corp reported faster-than-expected US sales growth last quarter as diners prioritised cheap fast food and pulled back from more premium meals at fast-casual chains.

US comparable-store sales, which reflect the results of established locations, increased 2.4% in the third quarter, higher than the average of analyst estimates, with the company attributing the rise mostly to higher per-visit spending.

Overall comparable sales, which add in international markets, were in line with expectations, while adjusted earnings per share fell short of the average of estimates compiled by Bloomberg.

President Donald Trump blamed the ongoing government shutdown for Democrats’ sweeping electoral wins, pressuring Republicans to abandon the filibuster in order to reopen federal agencies and pass new crackdowns on mail-in voting.

“I think if you read the pollsters, the shutdown was a big factor, negative for the Republicans,” Trump said Wednesday during a breakfast for GOP senators at the White House.

Democrats cruised to victory over Republican gubernatorial candidates in Virginia and New Jersey, while democratic socialist Zohran Mamdani beat Trump-endorsed Andrew Cuomo to become the next New York City mayor. The outcome signalled voters’ unease with the economy under Trump, which could give Democrats a path to taking back control of Congress in the 2026 midterm elections.

US services activity picked up sharply in October, expanding at its fastest pace in eight months, according to new data from the Institute for Supply Management. The ISM services index rose to 52.4, boosted by a surge in new orders and business activity. However, inflation pressures intensified, with the prices-paid index jumping to a three-year high amid higher import tariffs. Despite concerns linked to the prolonged government shutdown, the report showed no signs of widespread layoffs. Eleven industries, including accommodation, food services, retail and wholesale trade, reported growth during the month, signalling steady momentum in the services economy.

Pinterest stock dropped more than 20% after the company issued a disappointing revenue outlook for the holiday quarter, signalling slower-than-expected growth in its advertising business. The visual search platform expects fourth-quarter revenue between $1.31 billion and $1.34 billion — below analysts’ average estimate of $1.34 billion.

**Pinterest shares plunge over 20% on weak holiday-quarter forecast**

Pinterest stock dropped more than 20% after the company issued a disappointing revenue outlook for the holiday quarter, signalling slower-than-expected growth in its advertising business. The visual search platform expects fourth-quarter revenue between $1.31 billion and $1.34 billion — below analysts’ average estimate of $1.34 billion. CFO Julia Brau Donnelly warned that tariffs on home furnishings could weigh on results.

While Pinterest’s third-quarter sales met expectations at $1.05 billion, user growth in the U.S. and Canada — its most profitable markets — remained nearly flat. The company recently launched “Pinterest Assistant,” an AI-powered visual shopping tool, as part of its push to boost engagement and monetisation. Pinterest reported 600 million monthly active users globally, slightly ahead of projections, though its key North American user base remains sluggish.

The US Supreme Court will hear arguments on Wednesday on the legality of former President Donald Trump’s sweeping tariffs imposed on several nations under the International Emergency Economic Powers Act. Lower courts have ruled that Trump exceeded his authority, saying only Congress can enact such measures. The tariffs, a key part of Trump’s trade agenda, range from 10% on many countries to as high as 50% on imports from India and Brazil, and include levies on products from Canada, China, and Mexico.

The Nasdaq Composite and the S&P 500 are trading around flatline. The Dow Jones Industrial Average is up 0.1%.

Pinterest stock tumbled over 17% in premarket trading after the social media company reported earnings that fell short of analyst expectations.

Advanced Micro Devices shares dropped 5% in premarket trade after the chipmaker’s adjusted margin guidance for the current quarter came in line with estimates, disappointing investors hoping for an upgrade.

US private employers added 42,000 jobs in October, according to ADP data released Wednesday, marking a modest rebound after a 29,000-job decline in September. The figure topped the Dow Jones estimate of 22,000, suggesting the labour market remains resilient despite broader economic uncertainty. Gains in trade, transportation and utilities — up 47,000 — helped offset losses in other sectors. Education and health services added 26,000 jobs, while financial activities rose by 11,000. The report offers a glimmer of strength ahead of Friday’s key nonfarm payrolls data.

Cava shares fell after the restaurant chain slashed its full-year forecast for the second consecutive quarter, citing weaker demand from younger diners. CFO Tricia Tolivar said customers aged 25 to 34 — a key demographic for fast-casual dining — have been visiting less frequently amid rising unemployment and resumed student loan repayments. She also noted that recent tariffs imposed by President Donald Trump have added “an overall fog for the consumer.” The company expects softer demand to persist through the final quarter of the year.

US markets extended their losses on Tuesday, with tech stocks leading the decline after months of powering Wall Street’s record rally. The Dow Jones slipped 250 points, while the S&P 500 and Nasdaq tumbled 1.2% and 2%, respectively, the latter closing 500 points lower at its session’s bottom.

The fast-food giant reported quarterly earnings and revenue that missed Wall Street expectations. However, US same-store sales came in stronger than anticipated, offering some relief to investors. CEO Chris Kempczinski called the results “a testament to our ability to deliver sustainable growth even in a challenging environment.” The company has warned for over a year about weakening restaurant spending, especially among lower-income customers, signalling continued caution for the broader consumer economy.

Super Micro Computer’s stock fell 8% after the company reported fiscal first-quarter results that came in below expectations. The AI server maker posted adjusted earnings of 35 cents per share on revenue of $5.02 billion, missing analyst estimates of 40 cents per share and $6 billion in revenue, according to LSEG. The results raised concerns that growth in AI hardware demand may be slowing, following months of strong momentum that had pushed the stock to record highs. Investors now await the company’s next guidance for clues on future demand trends.

Michael Burry, the investor who famously predicted the US mortgage crisis, that became the trigger for the global financial crisis of 2008, has disclosed bearish positions on Nvidia Corp. and Palantir, the former being the most valued company in the world, and the latter being the most expensive stock on the S&P 500 index.

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US markets extended their losses on Tuesday, with tech stocks leading the decline after months of powering Wall Street’s record rally. The Dow Jones slipped 250 points, while the S&P 500 and Nasdaq tumbled 1.2% and 2%, respectively, the latter closing 500 points lower at its session’s bottom.

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