On Tuesday, December 19, 2023, U.S. stock indexes closed higher, with the S&P 500 Index rising by 0.46%, the Dow Jones Industrial Average increasing by 0.16%, and the Nasdaq 100 up by 0.50%. This upward trend followed a stronger-than-expected Q3 GDP report, which showed a growth of 4.3%, surpassing initial forecasts of 3.3%. However, market sentiment was impacted by a decrease in the probability of a Federal Reserve rate cut at the next meeting, dropping from 20% to 13%.
In addition to the GDP data, various economic indicators painted a mixed picture. The Conference Board’s U.S. consumer confidence index fell to 89.1 in December, down from 92.9 in November, contrary to expectations of 91.0. Meanwhile, the October durable goods orders fell by 2.2%, worse than the anticipated 1.5% decrease, while core capital goods orders edged up by 0.5%, slightly above market expectations. The 10-year T-note yield increased to 4.165% amid these developments.
