Wall Street ends higher on solid data, strong earnings

STORY: U.S. stocks rebounded on Wednesday, with the Dow adding nearly half a percent, the S&P 500 gaining more than a third of a percent and the Nasdaq climbing roughly two-thirds of a percent.An early market rally on Wednesday lost some momentum after JPMorgan Chase CEO Jamie Dimon told Reuters that asset prices are quite high and there is always a risk of markets going down.Technology and AI-related shares, in particular, have muscled the stock market to record-breaking highs in recent months, leading to worries of inflated valuations.Those worries came to a head on Tuesday, when the S&P 500 and the Nasdaq posted their largest single-day percentage drops since October 10.Ross Mayfield, investment strategist at Baird Private Wealth Management, said that while stocks may continue to climb, investors should expect some road bumps along the way."We're in now year four of this bull market. There's uncertainties and headwinds, but there's also tailwinds. So I think the takeaway is, you know, you're never going to get a sustained sell-off that's just valuations without some other catalyst. The tech and AI tailwinds are still there. I think investors do just need to buckle up for a higher level of volatility as we move into year four here, and really pressed up against the upper bound of where valuations have been over the last 20-30 years."Meanwhile, ADP's National Employment Report on Wednesday showed private payrolls rebounded in October, though still showed some weakness. A separate report showed the U.S. services sector expanding, even as it loses jobs and contends with high input costs.Stocks on the move Wednesday included Tinder owner Match Group, which gained more than 5% despite the online dating company forecasting fourth-quarter revenue that was shy of expectations.Shares of the server maker Super Micro Computer tumbled more than 11% in the wake of the company's disappointing results.And shares of Amgen gained nearly 8% after the drugmaker's profit beat.

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