US stocks experienced a modest climb in midday trading on Wednesday, following the benchmark S&P 500’s recent record set on Tuesday. This positive momentum has positioned Wall Street favorably as it approaches the Christmas holiday.
Leading the gains, the Dow Jones Industrial Average rose by 0.5%, inching closer to a new record high. The S&P 500 also saw an increase of 0.3%, while the tech-heavy Nasdaq Composite edged up nearly 0.2%. This upward trend suggests a “Santa Claus” rally could be on the horizon, with the S&P 500 now standing above 6,900 after four consecutive days of gains.
Despite some discouraging economic data, which might have typically dampened market enthusiasm, investors remain optimistic. The latest government report showed US GDP growth at an impressive 4.3% for the third quarter, surpassing forecasts, supported by resilient consumer spending over the summer months. However, this data has led some traders to reduce their expectations for a potential rate cut from the Federal Reserve in January, with only about 13% now anticipating such a move. Nevertheless, many expect two rate cuts to occur by the end of next year, even with anticipated changes in leadership at the Fed.
Furthermore, the labor market offered additional positive signs as unemployment claims declined for the second consecutive week, although consumer confidence remains shaky.
In commodity markets, precious metals surged, with gold reaching an all-time high above $4,500 an ounce before settling back slightly. Silver also hit a record high, while platinum dropped by over 3%. Oil prices stabilized after recent increases.
In tech news, Intel managed to limit its losses to approximately 1% following reports that Nvidia paused a test utilizing Intel’s fabrication technology for advanced chips.
This overall market performance is a hopeful sign for investors as they anticipate the upcoming holiday season, indicating a buoyant atmosphere on Wall Street despite broader economic concerns.