Wall Street Trades Flat Near Peaks as Strong US GDP Pushes Bond Yields Higher

New York: US equity markets traded largely flat near record levels on Tuesday as stronger-than-expected economic growth data lifted Treasury yields, while stock movements remained muted amid holiday-thinned trading.

The benchmark S&P 500 hovered close to its all-time high touched earlier this month. The Dow Jones Industrial Average slipped 27 points, or 0.1%, while the Nasdaq Composite was broadly unchanged, according to the Associated Press.

US government data showed that the economy expanded at a faster-than-expected pace during the July–September quarter, underscoring continued resilience despite elevated interest rates and slowing manufacturing activity. The stronger growth outlook pushed US Treasury yields higher, reinforcing expectations that the Federal Reserve may proceed cautiously on further interest rate cuts.

Ahead of the opening bell, futures linked to the S&P 500, Dow and Nasdaq were largely flat, signalling a subdued start as markets prepared for early closures on Wednesday and a full shutdown on Thursday for the Christmas holiday.

Stocks in Focus

Shares of Novo Nordisk jumped after US regulators approved a daily oral version of its blockbuster weight-loss drug Wegovy. The approval marks the first pill-based treatment cleared for obesity in the United States, boosting sentiment around the healthcare sector.

Commodities and Global Markets

In commodities, gold extended its rally to fresh record highs as investors continued to seek safe-haven assets amid global uncertainty. Silver also gained, while oil prices edged higher after the US Coast Guard said it was pursuing another sanctioned oil tanker in the Caribbean. Despite the uptick, crude prices remain sharply lower for the year due to weak demand signals and soft factory activity.

Overseas markets were mixed. European equities traded in a narrow range, with Germany’s DAX edging higher while France’s CAC 40 slipped. In Asia, Japan’s Nikkei remained flat as the yen strengthened following official warnings of possible intervention to curb excessive currency weakness. Markets in China and South Korea posted modest gains, while Australian shares rose more than 1%.

What Investors Are Watching Next

Attention now shifts to a slate of US economic data due during the shortened holiday week, including updated GDP figures, consumer confidence numbers from the Conference Board, and weekly jobless claims—key indicators for assessing the health of the US labour market.