US market today: Wall Street steadies after strong jobs data; Nasdaq faces AI-driven valuation pressure

Wall Street stocks found stability on Wednesday following stronger-than-anticipated US employment data, even as Asian markets posted sharp declines and worries about an AI-fueled valuation surge weighed on the tech-heavy Nasdaq.US private sector employment increased by 42,000 in October, ADP reported, bouncing back from a September decline of 29,000 jobs. The gain nearly doubled forecasts from economists surveyed by Dow Jones Newswires and The Wall Street Journal, reported AFP.Analysts say these ADP numbers could draw fresh focus as one of the few recent economic indicators, shaping investor expectations around whether the Federal Reserve might cut interest rates in December.The major US indices opened the session broadly unchanged. The so-called Magnificent Seven tech companies continued to face selling pressure, with both Amazon and Apple retreating roughly 1 per cent.O’Hare highlighted semiconductor firm AMD, which is positioning itself as a key player in AI chips and recently reported stronger-than-expected third-quarter earnings. “Advanced Micro Devices (AMD) may be the tell on whether that approach will shine yet again or lose some of its luster,” he said.

Shares in AMD opened down 2.7 percent.He added, “If AMD can fight back, chances are other growth stocks will follow," as quoted by AFP.Global equities have climbed this year as massive investment poured into companies linked to artificial intelligence, including US giants Nvidia, Amazon, and Apple, alongside Asian firms such as Samsung and Alibaba. However, despite robust earnings, market participants are increasingly cautious about chasing ever-higher stock prices, as most capital remains concentrated in a limited number of large-name firms.Investor sentiment was also pressured by the US government shutdown, which on Wednesday became the longest in American history, exceeding the previous 35-day record set during President Donald Trump’s first term. The administration warned of potential travel disruptions during the upcoming holiday period and threatened Americans’ benefits to push for a resolution. A total of 1.4 million federal employees, including air-traffic controllers and park rangers, are either furloughed or working without pay.At around 1430 GMT, New York’s main indices were largely flat, with the Dow at 47,078.11 points, the S&P 500 at 6,770.83, and the Nasdaq Composite up less than 0.1 percent at 23,362.57. In Europe, London’s FTSE 100 rose 0.3 percent to 9,748.47, while Paris’s CAC 40 fell 0.1 percent to 8,059.84 and Frankfurt’s DAX declined 0.2 percent to 23,907.94. In Asia, Tokyo’s Nikkei 225 closed down 2.5 percent at 50,212.27, Hong Kong’s Hang Seng Index slipped 0.1 percent to 25,935.41, and Shanghai’s Composite gained 0.2 percent to 3,969.25. On the currency front, the euro rose to $1.1486 from $1.1479, the pound increased to $1.3027 from $1.3019, and the dollar strengthened to 153.98 yen from 153.66. The euro was slightly down against the pound at 88.16 pence from 88.17 pence. In commodities, Brent crude fell 0.6 percent to $64.08 per barrel, while West Texas Intermediate dropped 0.7 percent to $60.13 per barrel.