The US stock market records remain firmly in sight as investors digest signs of unexpectedly strong economic momentum. Stocks hovered near all-time highs after government data showed the U.S. economy grew at a surprisingly robust pace in the third quarter, reinforcing confidence in the resilience of consumer spending and corporate earnings.
Early Tuesday trading reflected a cautious but steady tone. The S&P 500 was little changed and stayed close to the record it reached earlier this month. The Dow Jones Industrial Average edged lower by about 0.1%, while the Nasdaq Composite was essentially flat. At the same time, Treasury yields climbed in the bond market, signaling that investors are reassessing growth and inflation expectations following the latest data.
Strong Economic Growth Supports US Stock Market Records
The government’s report on gross domestic product showed the U.S. economy expanding faster than many economists had anticipated in the third quarter. This initial estimate is the first of three GDP readings and serves as a key snapshot of broader economic health.
Stronger growth tends to support equity valuations by improving revenue and profit prospects for companies. However, it can also push bond yields higher, as investors price in the possibility that interest rates may stay elevated for longer. This dynamic helps explain why stocks held steady rather than surging, even as the data reinforced optimism about the economy.
Markets are also navigating holiday-thinned trading conditions. With U.S. markets closing early Wednesday and remaining shut Thursday for Christmas, many investors appear content to hold positions rather than make aggressive moves.
Novo Nordisk Jumps on Drug Approval News
One of the standout movers was Novo Nordisk (NYSE:NVO), whose shares jumped more than 7% after U.S. regulators approved a pill version of its blockbuster weight-loss drug Wegovy. The approval marks the first daily oral medication to treat obesity, expanding the reach of GLP-1 therapies beyond injectable treatments.
The news boosted sentiment not only toward Novo Nordisk but also across parts of the healthcare sector. The company’s GLP-1 drugs mimic a hormone that regulates appetite and feelings of fullness, and demand for obesity treatments has become a major growth driver for pharmaceutical stocks.
Commodities Rally as Gold Hits Fresh Records
Commodities added another layer to the market story. Gold prices surged 1.2% to around $4,523 an ounce, again touching record levels and extending a yearlong rally. Silver climbed 1.7% to nearly $69.71 an ounce.
The rise in precious metals reflects a combination of factors, including ongoing geopolitical uncertainty, central bank buying, and investor demand for hedges against inflation and currency volatility. The strength in gold underscores how diversification beyond equities remains attractive, even as US stock market records hold firm.
Oil Prices Edge Higher Despite Weak Demand
Oil prices moved modestly higher after a strong session on Monday, when prices jumped more than 2% following reports that the U.S. Coast Guard was pursuing another sanctioned oil tanker in the Caribbean. U.S. benchmark crude rose slightly to about $58.05 per barrel, while Brent crude gained to roughly $62.14 per barrel.
Despite the short-term uptick, oil prices are still down around 19% since the beginning of 2025. Demand has lagged, and recent data from S&P Global showed U.S. factory activity slipping to five-month lows. This weakness highlights ongoing challenges for energy markets, even as broader economic growth appears solid.
Global Markets Show Mixed Performance
Overseas markets painted a mixed picture. In Europe, Germany’s DAX edged slightly higher, while France’s CAC 40 dipped and Britain’s FTSE 100 was flat. Asian markets were similarly uneven.
Japan’s Nikkei 225 finished little changed, while the U.S. dollar weakened against the Japanese yen after Japanese officials warned of potential intervention if currency volatility continued. The dollar slipped to around 155.95 yen, down from late Monday levels, as traders reacted to comments following the Bank of Japan’s recent policy move.
Elsewhere in Asia, Hong Kong’s Hang Seng slipped modestly, mainland China’s Shanghai Composite edged higher, and South Korea’s Kospi gained ground. In Australia, the S&P/ASX 200 jumped more than 1%, while markets in Taiwan and India were mostly steady.
What Investors Are Watching Next
Even in a shortened holiday week, several economic reports could influence market direction. In addition to the GDP release, investors are tracking consumer confidence data from the Conference Board and weekly jobless claims from the Labor Department. These indicators will help clarify whether strong growth can be sustained into year-end.
For now, the takeaway is clear: US stock market records are being supported by resilient economic data, selective corporate catalysts, and global crosscurrents. While rising yields and mixed global signals may limit short-term upside, the broader tone suggests investors remain confident in the underlying strength of the U.S. economy.
Featured Image – Freepik
