US equities traded higher on Tuesday, with the S&P 500 closing at a new record as investors looked past stronger-than-expected economic data that reduced expectations for near-term interest-rate cuts. Robust summer growth in the US economy prompted traders to scale back bets on an imminent policy easing by the Federal Reserve.
The S&P 500 advanced 0.5% to finish at a record 6,909.79, while the Nasdaq Composite gained 0.6%. The Dow Jones Industrial Average added about 0.2%. All three major benchmarks extended their winning streak to a fourth consecutive session.
Precious metals continued their powerful rally, with gold and silver pushing higher and remaining on track for their strongest annual performance in more than 40 years. Copper also surged to a fresh record, climbing above $12,000 per metric ton.
Ahead of the Christmas holiday, markets digested the final major batch of economic data. Third-quarter GDP showed the US economy expanded at a 4.3% annualized pace, well above the 3.3% consensus forecast, underscoring ongoing economic resilience. The delayed report also highlighted solid consumer spending through the summer months.
Following the release, traders reduced expectations for a January rate cut. Markets now assign more than an 85% probability that the Federal Reserve will hold rates steady, up from 80% the previous day and 75% last week. Still, most market participants continue to anticipate two rate cuts by the end of next year.
Meanwhile, December consumer confidence fell for a fifth straight month, according to the Conference Board, signaling continued caution among households despite strong macroeconomic data.
US stocks have rebounded in recent sessions after last week’s softer inflation data and mixed labor-market indicators helped keep expectations for policy easing in 2026 largely intact.
In corporate news, shares of Novo Nordisk surged after the drugmaker received US approval to market its Wegovy weight-loss treatment.
Looking ahead, US markets will close early on Wednesday and remain shut on Thursday in observance of the Christmas holiday.
