4:05pm: S&P notches another record
Wall Street wrapped up the session in a good mood on Tuesday, with stocks mostly higher and the S&P 500 carving out yet another record before the closing bell.
The S&P 500 rose 0.5%, or 31 points, to finish at 6,910, marking its latest record of 2025 and extending Wall Street’s winning streak to four straight sessions. The Nasdaq led the way, climbing 0.6% to 23,562, while the Dow Jones Industrial Average added 80 points, or 0.2%, to close at 48,442. The one soft spot was the Russell 2000, which slipped 0.7% as smaller-cap stocks lagged their larger peers.
Investors digested a surprisingly strong look at the US economy, with fresh data showing gross domestic product grew at a 4.3% annualized rate in the third quarter. That easily topped expectations for 3.3% growth and reinforced the idea that the economy remains on solid footing. At the same time, the strength prompted traders to dial back some near-term interest rate cut bets — but the market largely shrugged that off and pushed higher anyway.
Commodities also stayed in the spotlight. Gold and silver continued to build on a powerful rally, putting both precious metals on track for their best year in more than 40 years. Copper joined the party as well, surging to a fresh record above $12,000 per ton.
Looking ahead, trading volumes may start to thin out. US stock markets will close early on Wednesday and remain shut all day Thursday for the Christmas holiday, giving Wall Street a brief pause after a strong pre-holiday run.
12:05pm: GDP cools rate cut speculation
Stocks were treading water around midday Tuesday after the latest GDP report showed the economy grew faster than expected over the summer. The stronger-than-anticipated growth has investors dialing back expectations for near-term interest-rate cuts.
The Nasdaq was up 0.4%, the S&P 500 gained 0.3%, and the Dow Jones Industrial Average rose 0.1%.
Eric Teal, Chief Investment Officer at Comerica Wealth Management, said the data paints a “Goldilocks” picture. "The economy is demonstrating a Goldilocks scenario with above-potential U.S. economic growth, and declining but elevated inflation and a less robust labor market," Teal said.
"Consumer spending remained strong via the wealth effect from higher asset prices. The Fed will likely maintain a dovish bias, which will only increase with a new Fed Chair next year. However, in cutting rates further there is an increased risk in pushing long-term bond yields higher and undermining the dollar."
Teal also pointed out a potential headwind: the drop in immigration could slow growth and push up wages, while hiring in industries dependent on immigrant labor has been weak, along with retail sales in border states.
For now, markets are balancing optimism about growth with caution on future Fed moves, and investors will be keeping a close eye on upcoming economic data and policy signals.
9:45am: Economy surprises
Markets opened quietly on Tuesday following news that the economy grew faster than expected in the third quarter.
The Dow Jones dipped slightly by 7 points to 48,356, while the S&P 500 added 8 points to 6,887. The Nasdaq led the gains, rising 40 points to 23,469, and the Russell 2000 fell 7 points to 2,552.
GDP for Q3 came in at a robust 4.3% annualized, topping expectations by a full percentage point. “The data may be overlooked because we’re so close to Christmas and many people are done trading for the year, but the GDP number this morning was exceptional,” said Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management in Charlotte, North Carolina.
Zaccarelli noted that the economy’s strength could shift investor focus away from worries about slowing growth and back toward concerns over price stability. “There will likely be light trading volume, but the path of least resistance is higher until the end of the year,” he said.
For now, investors are taking the GDP beat in stride, keeping markets relatively steady as they head into the final week of 2025.
8:45am: GDP rises
Stock futures are drifting lower this morning, with the S&P 500, Nasdaq 100, and Dow all down around 0.2%, after stocks notched a three-day winning streak to start the week.
The data is a bit of a mixed bag. The economy grew faster than expected in Q3, with GDP up 4.3% annualized—beating forecasts of 3.3%—thanks to solid consumer spending. But some of that momentum is fading: durable goods orders for October came in weaker than expected, falling 2.2% versus the 1.5% drop economists were anticipating. Rising living costs and the recent government shutdown aren’t helping either.
Meanwhile, precious metals are on fire. Gold and silver are climbing again, extending a rally that’s on track to be their best year in more than 40 years.
Traders are likely in a “wait and see” mood this morning, balancing the strong GDP numbers with signs that the economy’s pace may be slowing.