Wall Street rises on mixed economic data, ASX set to dip
The Australian dollar was trading at 67.02¢ at 10.34am AEDT.
On Wall Street, the US government’s first assessment of economic growth in the third quarter showed strong growth and high inflation. A separate report showed consumer confidence continued to decline in December. All this contributed to the complex picture of the economy.
The S&P 500’s latest record high came even as most stocks in the benchmark index lost value. Technology stocks, which have been the main force driving major indexes to records all year, have once again managed to offset weakness elsewhere in the market.
The S&P 500 index rose 31.30 points, or 0.5 percent, to 6,909.79 points, surpassing the record set in early December. The Dow Jones index rose 79.73 points, or 0.2 percent, to 48,442.41 points. The Nasdaq composite rose 133.02 points, or 0.6 percent, to 23,561.84 points.
Nvidia rose 3 percent and was the biggest force helping the market move higher. It is among the few large tech companies with outsized valuations, which tends to have more influence on the direction of the broader market. Google’s parent company Alphabet rose 1.5 percent.
Novo Nordisk rose 7.3 percent after U.S. regulators approved a pill version of blockbuster weight-loss drug Wegovy, the first daily oral medication to treat obesity.
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Wall Street got the latest economic developments in a quiet week shortened by the holidays. Markets in the US will close early on Wednesday for Christmas Eve and remain closed on Christmas Thursday.
The US economy grew at an annual rate of 4.3 percent in the third quarter. That builds on 3.8 percent growth in the second quarter and marks a sharp turnaround from the first quarter, when the U.S. economy shrank for the first time in three years.
The latest report also showed that persistent inflation continues to impact the economy. The Federal Reserve’s favorite inflation gauge — called the personal consumption expenditures index, or PCE — rose to an annual rate of 2.8 percent last quarter, from 2.1 percent in the second quarter.
The yield on the 10-year Treasury note rose from 4.15 percent to 4.16 percent just before the third-quarter gross domestic product report was released. The yield on the two-year Treasury note, which more closely tracks expectations for the Fed’s actions, rose to 3.53 percent from 3.49 percent just before the report was released.
The Fed adopted a more cautious policy approach in the face of mixed signals from the economy. Economic growth is occurring while inflation remains stubbornly above the central bank’s 2 percent target. The job market is also slowing, adding another layer of concern about whether the central bank will continue to cut interest rates.
On Wednesday, the Labor Department will release weekly data on applications for unemployment benefits, a gauge of layoffs in the United States.
The Fed has cut rates three times in 2025, and the central bank’s rate-setting committee is divided on additional rate cuts in 2026. At their last meeting, committee members envisioned a wide range of possibilities, from keeping interest rates steady to two or more cuts.
Wall Street expects the Fed to keep interest rates steady at its January meeting.
Consumer spending and confidence remain weak amid concerns about higher prices, especially with a wide-ranging U.S. trade war that could further raise prices for many goods.
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The latest update from business group The Conference Board showed consumer confidence fell in December to its lowest level since tariffs were introduced in April. Meanwhile, retail sales are weakening as consumers become more cautious.
Markets in Asia and Europe were mixed.
Gold price continued its rise. It rose 0.8 percent to $4,505.70 per ounce on Tuesday and is up nearly 70 percent for the year.
