(MENAFN) U.S. equities closed higher midweek, supported by a rebound in private sector employment following several months of sluggish performance, as well as heightened scrutiny from Supreme Court justices regarding the legality of President Donald Trump's tariffs.

The Dow Jones Industrial Average increased 0.48%, or 225.76 points, finishing Wednesday at 47,311.

The Nasdaq gained 0.65%, or 151.16 points, to 23,499.80, while the S&P 500 advanced 0.37%, or 24.74 points, reaching 6,796.29.

Meanwhile, the Volatility Index (VIX), often referred to as the "fear index," declined 5.21% to 18.01.

Investors closely monitored the Supreme Court as it reviewed arguments over comprehensive U.S. tariffs enacted under Trump.

The central issue was whether the International Emergency Economic Powers Act (IEEPA) granted the president the authority to implement such measures.

Justices across the ideological spectrum questioned Solicitor General D. John Sauer about the Trump administration's justification for the tariffs, signaling potential legal challenges to the broad trade measures.

Following the hearing, shares of Detroit automakers exposed to tariff risks, including Ford and General Motors, surged by more than 2% each.

On the economic front, ADP reported that private sector nonfarm employment increased by 42,000 in September, surpassing expectations of a 32,000 gain.

Analysts remarked that the rebound in private employment in October eased some concerns over a softening labor market. While the data reduced speculation about a potential interest rate cut, it also underscored the resilience of the economy.

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