The S&P 500 clinched a fresh all-time high on Tuesday, led by tech stocks, as traders digested a robust third-quarter GDP report and hoped to spark a year-end Santa Claus rally.
The benchmark index closed at 6,909, powered largely by a rally in tech. Nvidia climbed 3%, extending its gain from Monday’s session on optimism over reports that the chipmaker could start shipping its H200 chip to China by February next year.
But the big news on Tuesday was the third-quarter GDP report, which blew past most estimates. Growth in the quarter came in at 4.3%, higher than the expected 3.3%.
While the report dimmed the outlook for more Fed rate cuts in the near term, it dispelled any lingering fears that the economy is headed for an imminent recession. The CME FedWatch tool still shows investors expect two rate cuts next year, even as the odds of a cut in January or March dwindled slightly after the report.
It’s been a strong holiday-shortened week already, and not just for stocks. Gold, silver, and copper jumped to all-time highs on the market’s anticipation for future rate cuts and bullishness for commodities exposed to the AI boom.
