U.S. stock futures traded near the flatline early Wednesday as investors caught their breath following Tuesday’s broad sell-off, driven by mounting concerns over overheated equity valuations. Focus is shifting to corporate results, policy risks, and the Supreme Court’s upcoming hearing on President Donald Trump’s controversial use of emergency powers to impose tariffs.
Futures Mixed After Tech-Led Declines
At 02:39 ET, Dow futures were up 29 points (0.1%), while S&P 500 futures slipped 13 points (0.2%) and Nasdaq 100 futures lost 89 points (0.4%). Tuesday’s session saw heavy selling in tech and AI-related names that have dominated this year’s rally, prompting analysts to describe the drop as a long-awaited bout of profit-taking.
“[S]tocks suffered broad selling […] as sentiment soured on tech at a time when investors don’t have much appetite to rotate into other parts of the market,” analysts at Vital Knowledge said, noting the move was “very much driven by ’vibes’ […] instead of actual news.”
The downturn spilled into Asia, with Japan’s Nikkei 225 falling back from record highs and South Korea’s KOSPI dropping as much as 6% before recovering part of its losses. “The risk mood has darkened a little this week, with some sizeable corrections emerging in some equity markets,” said ING’s Chris Turner and Francesco Pesole.
Investor sentiment has also been clouded by the ongoing U.S. government shutdown, which has delayed key economic data releases. Traders are now looking to the ADP private payrolls report for October to gauge the labor market’s strength in the absence of official figures.
Supreme Court Weighs Trump’s Tariff Authority
The Supreme Court is set to hear arguments on whether Donald Trump exceeded his authority when he invoked emergency economic powers to impose tariffs on multiple countries. Lower courts previously ruled against the move, finding that it violated the limits of the 1977 International Emergency Economic Powers Act (IEEPA).
Trump has defended the tariffs, claiming the U.S. trade deficit and fentanyl crisis justify their use under national emergency provisions. A ruling against the measure could strip him of a critical negotiating tool, though Treasury Secretary Scott Bessent said he expects the court to uphold the duties. If not, he added, “the White House could use other tariff powers,” including temporary 15% levies lasting 150 days to correct trade imbalances.
AMD Results Impress, But Profit Pressures Persist
Shares of Advanced Micro Devices (NASDAQ:AMD) slipped in after-hours trading, despite the chipmaker reporting stronger-than-expected third-quarter results. Revenue rose 9% to $9.25 billion, with earnings of $1.96 billion, or $1.20 per share — both topping forecasts.
Data center sales, which include AI processors, surged 22% to $4.3 billion, while the company guided fourth-quarter revenue to around $9.6 billion, plus or minus $300 million. CEO Lisa Su said the company is seeing “unprecedented growth opportunities” driven by the AI revolution. However, a 14% profit decline in the data center unit underscored how soaring production costs are squeezing margins as AMD races to scale output.
Novo Nordisk Trims Profit Guidance
Novo Nordisk (NYSE:NVO) lowered its full-year profit and revenue targets, signaling slower growth for its obesity and diabetes franchises. The Danish drugmaker now expects operating profit to rise 4–7% in constant currencies, down from previous guidance of 4–10%.
CEO Mike Doustdar attributed the weaker outlook to “lower growth expectations” for its GLP-1 treatments and said the company aims to “accelerate on all fronts” in an increasingly “dynamic” and “competitive” market. Novo has been facing stiffer competition from Eli Lilly and other rivals, while compounded drug alternatives have eroded its market share. The company’s shares have lost around half their value so far in 2025 after last year’s surge on the success of its obesity drug Wegovy.
Bitcoin Briefly Falls Below $100,000
Bitcoin (COIN:BTCUSD) extended its recent slide, briefly falling below the $100,000 mark before recovering slightly. By 03:55 ET, the cryptocurrency was down 2.2% at $101,770 after hitting an intraday low of $99,010 — its weakest level since June.
The drop pushed Bitcoin into official bear market territory, now down more than 20% from its early-October high of $126,186. Data from CoinGlass showed that over $1.27 billion in leveraged crypto positions were liquidated earlier this week, most of them long bets on Bitcoin’s continued rally. The unwinding of those positions has added pressure to the broader crypto market, extending the recent downturn.