(MENAFN) US equity markets rallied Wednesday as employment data exceeded forecasts and Supreme Court justices signaled doubts about the constitutional authority behind President Donald Trump's sweeping tariff regime.

The Dow Jones Industrial Average advanced 225.76 points, or 0.48%, settling at 47,311. The tech-heavy Nasdaq gained 151.16 points, climbing 0.65% to finish at 23,499.80, while the S&P 500 added 24.74 points, up 0.37%, closing at 6,796.29.

Market anxiety subsided as the Volatility Index (VIX)—Wall Street's so-called "fear index"—tumbled 5.21% to 18.01.

Trading sentiment shifted during Wednesday's Supreme Court session, where justices scrutinized the administration's expansive tariff program. Central to the debate: whether the International Emergency Economic Powers Act (IEEPA) grants presidential authority to impose such wide-ranging trade penalties.

Both conservative and liberal members of the high court pressed Solicitor General D. John Sauer regarding the Trump administration's legal justification, expressing skepticism about the tariffs' lawful scope.

Market reaction proved immediate. Shares of tariff-vulnerable Detroit automakers Ford and General Motors each surged over 2% following the proceedings.

Employment figures delivered additional momentum. ADP's private sector nonfarm payroll count jumped 42,000 in September, surpassing economist predictions of 32,000 new positions.

Market observers highlighted that October's private employment rebound eased fears surrounding labor market deterioration. Though the robust data diminished prospects for aggressive interest rate reductions, analysts interpreted the numbers as evidence of underlying economic resilience.

Separately, AMD shares climbed 2.5%—reversing early losses—and lifted other artificial intelligence-focused equities. Despite initial trader apprehension regarding AI and technology sector profit margins, the chipmaker's third-quarter results topped analyst projections for both earnings and revenue.

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