S&P 500 Hits New High After Strong GDP Data

04:45 PM EST, 12/23/2025 (MT Newswires) -- Wall Street's main equity benchmarks rose Tuesday, with the S&P 500 hitting an all-time high as data showed strong economic growth in the third quarter.

The S&P 500 climbed 0.5% to 6,909.8, logging a new closing record. The Nasdaq Composite advanced 0.6% to 23,561.8, while the Dow Jones Industrial Average finished 0.2% higher at 48,442.4. All three indexes extended their gains into a fourth consecutive session.

Most sectors ended higher, led by communication services and technology, while consumer staples saw the biggest drop.

US markets will close early Wednesday and remain shut Thursday for Christmas.

The economy grew at the fastest pace in two years in the third quarter amid robust consumer spending, delayed government data showed Tuesday.

Real gross domestic product rose at an annual rate of 4.3% in the September quarter, according to an initial estimate by the Bureau of Economic Analysis. The consensus was for 3.3% growth in a survey compiled by Bloomberg.

"The report will greatly lessen the odds of a (Federal Reserve) rate cut on Jan. 28, and even adds some doubt about future moves," BMO Capital Markets said in a note. "Given the economy's resilience, softness in both employment and inflation might be needed to spur rate cuts in 2026."

The probability of the US central bank holding its benchmark lending rate steady next month rose to about 87% Tuesday from 80% Monday, according to the CME FedWatch tool.

The GDP report points to a potentially K-shaped US economy, James Knightley, ING chief international economist in New York, said in a note.

"The top 20% of households by income continue to spend strongly, boosted by high incomes and soaring wealth, while the bottom 60% are really struggling on concern about job security and the potential for tariff-induced price hikes," Knightley wrote. "This goes a long way in explaining why spending is holding up yet confidence is so weak."

Other economic indicators released Tuesday showed that demand for US durable goods declined more than expected in October, while consumer confidence fell for a fifth straight month in December.

However, industrial production rebounded in November, driven by mining, while manufacturing output held steady month over month, according to delayed data from the Federal Reserve.

Holiday spending in the US rose at a slower pace in 2025 than last year, according to preliminary data from Visa (V). Retail spending for the holiday season increased 4.2% year over year across all forms of payment, according to the report, below the 4.8% annual gain recorded in 2024.

Separately, Mastercard (MA) said US retail sales excluding automotive rose 3.9% year over year from Nov. 1 through Dec. 21.

Gold futures were last up 1.2% at $4,521.20 per ounce. CNBC reported the yellow metal reached an all-time high of $4,530.80 per ounce earlier in the day. Spot silver crossed $70 per ounce for the first time earlier in the session, according to the report.

Silver futures were last up 4.4% at $71.55 an ounce.

US Treasury yields were mixed, with the 10-year rate little changed at 4.17% and the two-year rate increasing 3.7 basis points to 3.54%.

Nvidia (NVDA) shares rose 3%, the top performer on the Dow and the second-best on the S&P 500. Amazon.com (AMZN) was the second-top Dow gainer, up 1.6%, while Broadcom (AVGO) was among the best performers on the S&P 500, with a 2.3% gain.

In company news, Freeport-McMoRan (FCX) was the third-biggest gainer on the S&P 500, up 2.5%, as Wells Fargo raised its price target on the miner's stock to $55 from $47.

Novo Nordisk's (NVO) US-listed shares jumped 7.3%. The Danish pharmaceutical giant said late Monday the US Food and Drug Administration approved the pill version of its Wegovy obesity drug for weight management and to reduce the risk of major adverse cardiovascular events.

ServiceNow (NOW) agreed to acquire cybersecurity startup Armis for $7.75 billion in cash, a deal that the company expects will more than triple its opportunity in the security and risk solutions market. ServiceNow (NOW) shares fell 1.5%

West Texas Intermediate crude oil was last up 0.8% at $58.48 a barrel.

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