Berliner Boersenzeitung - S&P 500 surges to record after strong US economic report

All three major Wall Street indices advanced, shaking off early choppiness after the strong US gross domestic product report sparked talk that the Federal Reserve could refrain from further interest rate cuts.

"The GDP number was unambiguously good and eventually markets come around to the realization that good news is good news," said Art Hogan of B. Riley Wealth Management.

"Unfortunately, the knee-jerk reaction was: 'If the economy is that strong, does the Fed need to cut anymore?'" said Hogan. "Luckily today, we shed that thought process."

US GDP came in at 4.3 percent, the highest reading in two years, easily topping expectations for 3.2 percent growth.

Heather Long, chief economist at the Navy Federal Credit Union, wrote that the report shows the resiliency of US consumers, boding "well for 2026."

"If the economy can avoid widespread layoffs, most American consumers can keep spending," she said.

The S&P 500 finished up 0.5 percent at 6,909.79, narrowly topping a record set earlier this month.

Separate data showed US consumer confidence fell in December, as a slowing job market offset better sentiment after the government shutdown ended, according to a Conference Board survey.

eToro investment analyst Bret Kenwell noted the headline figure has now declined for five straight months, and the component showing the confidence of consumers in their present situation is at its lowest since February 2021.

"Simply put, despite solid GDP figures and a stock market at record highs, consumers are feeling some anxiety," he said.

Gold jumped to a high above $4,497 per ounce, while silver surged above $70 an ounce, with the US blockade against Venezuela and the Ukraine conflict adding support.

Copper, which is used in electric vehicle batteries and solar panels, hit a record price of $12,159.50 per ton.

"Silver and above all copper are benefitting from structural support from the energy transition, electrification the colossal needs for digital infrastructure and artificial intelligence," said John Plassard, an analyst at Cite Gestion Private Bank.

Europe's main stock markets ended mixed.

"European stock markets appear to have entered a period of consolidation as we head into the final trading days of 2025," said Joshua Mahony, chief market analyst at Scope Markets.

"With the Santa rally period traditionally taking place over the final five days of the year, investors will be hoping that the bulls are gathering momentum for a final push tomorrow onwards," he added.

Asian markets enjoyed a bright start, although some stuttered as the day wore on.

On currency markets, the yen extended gains after Japan's Finance Minister Satsuki Katayama flagged authorities' powers to step in to support the unit, citing speculative moves in markets.

The yen suffered heavy selling after Bank of Japan boss Kazuo Ueda held off signaling another rate hike anytime soon following last week's increase.

In company news, shares in Danish pharmaceutical giant Novo Nordisk jumped more than eight percent after the US approved its popular GLP-1 anti-obesity drug Wegovy to be administered in pill form for weight loss.

- Key figures at around 2115 GMT -

New York - Dow: UP 0.2 percent at 48,442.41 (close)

New York - S&P 500: UP 0.5 percent at 6,909.79 (close)

New York - Nasdaq Composite: UP 0.6 percent at 23,561.84 (close)

London - FTSE 100: UP 0.2 at 9,889.22 (close)

Paris - CAC 40: DOWN 0.2 percent at 8,103.85 (close)

Frankfurt - DAX: UP 0.2 percent at 24,340.06 (close)

Tokyo - Nikkei 225: FLAT at 50,412.87 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 25,774.14 (close)

Shanghai - Composite: UP 0.1 percent at 3,919.98 (close)

Dollar/yen: DOWN at 156.27 yen from 157.05 yen on Monday

Euro/dollar: UP $1.1791 from $1.1762

Pound/dollar: UP at $1.3499 from $1.3461

Euro/pound: DOWN at 87.34 pence from 87.37 pence

West Texas Intermediate: UP 0.6 percent at $58.38 per barrel

Brent North Sea Crude: UP 0.5 percent at $62.38 per barrel

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(Y.Berger--BBZ)