US open: Stocks rise following upbeat private payrolls figures
By Iain Gilbert
Date: Wednesday 05 Nov 2025
(Sharecast News) - Major indices opened higher on Wednesday as market participants continued to reassess valuations across the AI-linked megacap space and thumbed over upbeat private payrolls figures.
As of 1520 GMT, the Dow Jones Industrial Average was up 0.32% at 47,234.95, while the S&P 500 advanced 0.33% to 6,793.98, and the Nasdaq Composite came out of the gate 0.43% firmer at 23,448.31.
The Dow opened 149.71 points higher on Wednesday, reclaiming some of the losses recorded in the previous session as artificial intelligence-related names came under pressure after quarterly numbers from software outfit Palantir as concerns mounted over its elevated valuation.
Stocks traded higher early on Wednesday as longer-term sentiment around the sector seemed to remain constructive, with investors citing continued strength in AI infrastructure spending as a key support for future growth.
On the macro front, US mortgage applications fell 1.9% in the week ended 24 October, according to the Mortgage Bankers Association, trimming the prior weel's 7.1% surge. Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, dropped 2.8% week-on-week, while applications to purchase a home fell by 0.7%.
Elsewhere, private sector payrolls rose more than expected in October, according to ADP, offering a modest sign of resilience in the US labour market. ADP said on Wednesday that US firms had added 42,000 jobs during October, topping consensus estimates of 22,000 gain and reversing a revised 29,000 decline in September. Despite subdued headline growth, wage inflation remained firm, with pay for job stayers rising 4.5% year-on-year, unchanged from September, while job switchers saw a 6.7% increase.
On another note, S&P Global's services PMI edged up to 54.8 in October from 54.2 in September, revised down from the initial flash reading of 55.2 but still ahead of consensus expectations for a print of 53.5. Stronger new order volumes underpinned the improvement, reflecting firm client demand despite ongoing uncertainty around US economic policy. Export demand, however, declined during the month, with respondents citing increased focus on tariff-related risks. S&P's composite PMI rose to 54.6 in October, up from 53.9 in September but slightly below the 54.8 flash estimate.
Finally, the Institute for Supply Management's services PMI rose to 52.4 in October, up from 50 in September, beating forecasts of 50.8 and pointing to the strongest expansion in the sector since February. Both business activity and new orders rebounded, while employmet continued to contract, pointing to a lack of confidence in the continued strength of the US economy.
In the corporate space, fast food giant McDonald's Q3 earnings rose from $2.26bn to $2.28bn but fell short of estimates as it continued to operate in a 'challenging environment'
Still to come, Qualcomm, Robinhood and DoorDash will report earnings after the close.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Amgen Inc. (AMGN) $311.27 4.91%
Intel Corp. (INTC) $37.98 2.57%
Dow Jones - Fallers
Microsoft Corp. (MSFT) $511.90 -0.47%
Cisco Systems Inc. (CSCO) $72.03 -0.41%
Apple Inc. (AAPL) $269.21 -0.31%
S&P 500 - Risers
Seagate Technology Plc (STX) $274.31 9.56%
Ipg Photonics Corp. (IPGP) $90.06 7.21%
Micron Technology Inc. (MU) $233.30 7.00%
Illumina Inc. (ILMN) $124.06 6.16%
Western Digital Corp. (WDC) $160.05 5.17%
Amgen Inc. (AMGN) $311.27 4.91%
United Airlines Holdings Inc (UAL) $94.45 4.05%
Lam Research Corp. (LRCX) $161.50 3.67%
Jack Henry & Associates Inc. (JKHY) $157.67 3.44%
Broadcom Inc. (AVGO) $363.73 3.35%
S&P 500 - Fallers
Cadence Design Systems Inc. (CDNS) $326.25 -2.09%
Brighthouse Financial, Inc. (BHF) $53.39 -1.66%
Nektar Therapeutics (NKTR) $55.22 -1.44%
Synopsys Inc. (SNPS) $410.39 -1.43%
J.B. Hunt Transport Services Inc. (JBHT) $170.59 -1.19%
Copart Inc. (CPRT) $42.36 -1.14%
Netflix Inc. (NFLX) $1,081.14 -1.08%
Verisk Analytics Inc. (VRSK) $217.88 -0.96%
Gilead Sciences Inc. (GILD) $121.99 -0.82%
Booking Holdings Inc. (BKNG) $4,951.00 -0.82%
Nasdaq 100 - Risers
Seagate Technology Plc (STX) $274.31 9.56%
Micron Technology Inc. (MU) $233.30 7.00%
Illumina Inc. (ILMN) $124.06 6.16%
Western Digital Corp. (WDC) $160.05 5.17%
Amgen Inc. (AMGN) $311.27 4.91%
Lam Research Corp. (LRCX) $161.50 3.67%
Broadcom Inc. (AVGO) $363.73 3.35%
Applied Materials Inc. (AMAT) $237.19 3.04%
KLA-Tencor Corp. (KLAC) $1,227.81 2.88%
American Airlines Group (AAL) $13.00 2.77%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $6.45 -37.65%
Cadence Design Systems Inc. (CDNS) $326.25 -2.09%
Mercadolibre Inc. (MELI) $2,261.13 -1.93%
Synopsys Inc. (SNPS) $410.39 -1.43%
J.B. Hunt Transport Services Inc. (JBHT) $170.59 -1.19%
Netflix Inc. (NFLX) $1,081.14 -1.08%
Verisk Analytics Inc. (VRSK) $217.88 -0.96%
Baidu Inc. (BIDU) $123.82 -0.94%
Gilead Sciences Inc. (GILD) $121.99 -0.82%
Booking Holdings Inc. (BKNG) $4,951.00 -0.82%
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