What to Expect in Markets This Week: Christmas Holiday, GDP, Consumer Confidence, Jobless Claims

Traders will get a brief pause this week with the Christmas holiday, though several important economic releases remain on the calendar.

U.S. financial markets will be closed on Thursday, while Wednesday will be a shortened trading session. Stock markets close at 1:00 p.m. EST, and bond markets wrap up at 2:00 p.m. EST, leading to lighter volumes and potentially sharper moves around data releases.

Key Economic Data to Watch

 GDP Takes Center Stage

Investors will get a first look at third-quarter U.S. GDP, one of several reports delayed by the earlier government shutdown.

Originally scheduled for October 30, the delay means the Bureau of Economic Analysis (BEA) will issue only two GDP estimates for Q3, followed by a final report—rather than the usual three.

• Initial Q3 GDP: Released Tuesday

• Final Q3 GDP: Scheduled for January 22

The GDP data follows a strong rebound in the second quarter, when growth surged to 3.8% after a 0.6% contraction in Q1, as tariff-related pressures drove imports higher earlier in the year.

Durable Goods & Industrial Data

Also due Tuesday:

• October durable goods orders

• Federal Reserve industrial production

• Capacity utilization data for October and November

These reports will offer insight into the health of U.S. manufacturing and business investment trends.

Consumer Confidence & Labor Market

• December Consumer Confidence (Tuesday) will provide a timely read on household sentiment and spending expectations.

• Weekly Jobless Claims (Wednesday) will be closely watched following last week’s employment report, which showed an uptick in unemployment in November.

 Bottom Line

With holiday-thinned liquidity, markets may react more sharply than usual to incoming data. GDP, consumer confidence, and jobless claims will shape expectations for economic momentum heading into year-end, even as many traders step away for the holidays.