Tonight's Highlights | U.S. Stock Futures Range-Bound, Market Eyes Trump Tariff Hearing

Wednesday, U.S. three major index futures range-bound, as selling wave triggered by investor worries over artificial intelligence (AI) sector shows signs of easing. Major European indices mostly down.

 

Pre-market data shows U.S. October ADP employment added 42,000, largest increase since July 2025, expected +30,000, prior -32,000.

 

Previous trading day, U.S. three major indices posted largest single-day drop in weeks, trimming some gains accumulated in this year's frenzy.

 

This year, market mainly driven by AI boom for continued rise, but investors often question if lofty valuations and massive AI investments are reasonable. Recently, some companies (like Meta) announced huge spending plans, making investors uneasy again.

 

Principal Asset Management chief global strategist Seema Shah said: "When seeing the scale and magnitude of these numbers, it's right to maintain healthy skepticism. But as long as these companies can continue to deliver on performance, the market overall will remain solid."

 

SoFi investment strategy head Liz Young Thomas said Tuesday: "I think the current situation isn't worrying yet. Though the rally has run to a relatively extended stage, there are some things to watch, but I still think the market will continue rising until year-end."

 

Investors will focus on Supreme Court hearing at 10 a.m. Eastern Time, core issue is whether president has authority to impose tariffs under International Emergency Economic Powers Act (IEEPA).

 

U.S. Treasury Secretary Bessent has stated that even if Supreme Court rules government loses, there are "many other legal authorities available."

Company News

SoftBank and OpenAI Announce Joint Venture

 

November 5, SoftBank Group and OpenAI announced establishment of joint venture SB OAI Japan GK, officially launched that day.

 

Statement says SB OAI Japan aims to provide "Crystal Intelligence" solutions, using artificial intelligence to revolutionize Japanese companies' management and operations. Product planned for official launch in 2026.

 

IBM to Lay Off in Q4

 

IBM local time November 5 said it will lay off in fourth quarter, affecting "low single-digit percentage" of total employees. As of end-2024, IBM has about 270,000 employees globally. Company did not further specify layoff numbers.

 

McDonald's Q3 Net Profit $2.278 Billion, Up 1% YoY

 

November 5, McDonald's released 2025 Q3 results: revenue $7.078 billion, up 3%; net profit $2.278 billion, up 1%.

 

Toyota Motor Q2 Operating Profit 839.55 Billion Yen, Down 27% YoY

 

November 5, Toyota Motor released second quarter financial results report.

 

Toyota Motor Q2 operating profit 839.55 billion yen, down 27% YoY; Q2 net profit 932.08 billion yen, up 62% YoY; Q2 net sales 12.38 trillion yen, up 8.2% YoY. Toyota Motor expects 2026 full-year operating profit 3.40 trillion yen, prior 3.20 trillion yen; expects 2026 full-year net profit 2.93 trillion yen, prior 2.66 trillion yen; expects 2026 full-year net sales 49.00 trillion yen, prior 48.50 trillion yen.