U.S. stock futures experienced a slight decline on Tuesday as fresh economic data revealed stronger-than-anticipated growth in the U.S. economy over the summer. This unexpected development led investors to reassess their expectations for near-term interest rate cuts by the Federal Reserve. Futures for the S&P 500, Nasdaq 100, and Dow Jones Industrial Average all dropped about 0.2%, following a positive trend of three consecutive days of gains for U.S. stocks to kick off the week. Additionally, precious metals such as gold and silver continued their rally, positioning them for their most impressive performance in over four decades.
On Tuesday, market watchers received a final fresh batch of economic data before the Christmas holiday. The Bureau of Economic Analysis reported that the U.S. economy grew at an impressive annualized rate of 4.3% in the third quarter, significantly surpassing economists’ projections of a 3.3% growth rate. This robust figure underscored continued consumer spending despite potential setbacks anticipated for the fourth quarter due to a recent government shutdown. Following the data’s release, market sentiment shifted, with approximately 85% of bets now suggesting that the Fed will halt its consecutive rate cuts, marking a rise of nearly ten percentage points from the previous week. Even so, the majority of futures still reflect expectations of two rate cuts by the end of the following year.
Attention is also focused on the Conference Board’s read on December consumer confidence, as 2025’s economic narrative is influenced by increasingly divergent economic experiences among American shoppers—evident in the aforementioned GDP data. Wall Street’s recent rally had brought the S&P 500 close to a record high, spurred by favorable economic indicators from the previous week, which included a surprising decrease in inflation and a lukewarm assessment of the labor market.
In corporate news, shares of Novo Nordisk surged in premarket trading after receiving official approval to market its Wegovy weight-loss pill in the U.S., a significant development for the Danish company amidst growing competition in the weight-loss sector.
As trading is set to wrap up early on Wednesday due to the upcoming Christmas holiday, the markets remain attentive to ongoing developments.
In the economic landscape, the unexpected acceleration of U.S. gross domestic product (GDP) raised eyebrows, with the Bureau of Economic Analysis highlighting a strong performance in consumer spending and exports, although investments displayed a downward trend. This “K-shaped” economic recovery indicates that while higher-income households sustain spending, lower-income demographics face heightened financial challenges.
In another realm of technology, Oura’s CEO expressed skepticism regarding the potential of new hardware from OpenAI to threaten the iPhone’s dominance. He suggested that, while innovative, it may not achieve widespread appeal in comparison to established devices.
The U.S. dollar is on track to experience its weakest annual performance since 2017, as indicated by the Bloomberg Dollar Index, signaling potential challenges ahead for the currency.
On the commodities front, copper prices hit a historic high of $12,000, driven by shifts in market conditions related to tariffs.
In premarket trading highlights, various stocks displayed notable movements. AST SpaceMobile saw a 3% drop following a recent surge. Meanwhile, CACI’s stock inched up by 1% after the defense contractor’s acquisition announcement. Carnival Corporation reported a positive quarter, leading to a 1% increase in its stock. Lastly, Huntington Ingalls Industries enjoyed a 4% boost after securing a U.S. Navy contract for a new class of warship, while rival companies also experienced stock gains as a result.
