US Equity Indexes Rise With Treasury Yields as Valuation Concerns, Correction Warnings Slip to Rear View

05:27 PM EST, 11/05/2025 (MT Newswires) -- US equity indexes rose on Wednesday as leadership returning to communication services and consumer discretionary signals that the sell-off in the previous trading session represented profit-taking driven by correction warnings rather than a fundamental market shift.

The Nasdaq Composite advanced 0.7% to 23,499.80, with the S&P 500 up 0.4% to 6,796.29 and the Dow Jones Industrial Average climbed 0.5% to 47,311.00.

The Global X Artificial Intelligence & Technology ETF (AIQ) , with net assets of $5.98 billion and investments in AI-related companies, rebounded 1.1%, following a 3.3% slump on Tuesday when valuation concerns and market-correction warnings from a couple of Wall Street banks led to a sell-off in the so-called AI trade.

The $386 billion Invesco QQQ Trust (QQQ), a tech-heavy exchange-traded fund offering exposure to Magnificent-7 across technology and communication services sectors, closed higher on Wednesday. Similarly, the Vanguard Communication Services Index Fund ETF Shares (VOX), which investors use for broad exposure to the Magnificent 7 but with a focus on communication services, ended the day higher.

The CBOE Volatility Index, also known as the fear gauge, slumped 5.2% to 18.01, after surging as much as 11% in the previous trading session.

In economic news on Wednesday, private jobs rose by 42,000 in October following two consecutive months of weak hiring, Automatic Data Processing reported. The consensus was for a 30,000 gain in a Bloomberg-compiled survey. The number of jobs lost in September was revised to 29,000 from 32,000.

The Institute for Supply Management's US services index rose to 52.4 in October from 50.0 in September, compared with expectations for 50.8 in a survey compiled by Bloomberg. The S&P Global US services index was revised downward to 54.8 in October from the 55.2 flash reading, but remained in expansion territory. The expectations were for no revision in a survey compiled by Bloomberg.

Most US Treasury yields rose, with the 10-year yield up 6.4 basis points to 4.16% and the two-year rate advanced 4.8 basis points to 3.63%. According to the CME FedWatch Tool, the probability of a 25-basis-point cut in December, after a reduction of the same magnitude in October, dropped to 63% by Wednesday afternoon, compared with 86% a month ago.

In company news, Alphabet (GOOG, GOOGL) unit Google's (GOOG) planned $32 billion acquisition of cybersecurity firm Wiz has cleared a key US regulatory hurdle, media outlets reported Tuesday, citing comments from Wiz Chief Executive Assaf Rappaport. Shares of the search giant closed 2.4% higher.

Amgen's (AMGN) new launches and pipeline progress are now under investor focus after the company topped estimates for Q3, according to a Morgan Stanley research note. Shares of the pharmaceutical giant popped 7.8%, among the top gainers on the Nasdaq, the S&P 500, and the Dow.

Axon Enterprise (AXON) reported non-GAAP earnings below forecast. Its shares slumped 9.4%, among the worst performers on the S&P 500 and the Nasdaq.

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