U.S. Q3 2025 GDP Jumps Unexpectedly

Economic Growth - Q3 GDP growth was reported at +4.3%, significantly above the expected +3.2%, marking the strongest growth in two years and an increase from Q2's +3.8% [2] - Core GDP for Q3 reached +2.9%, exceeding expectations by 30 basis points and the highest since Q1's +3.3% [3] Consumer Spending - Consumption contributed positively to GDP growth, reported at +3.5%, up from the anticipated +2.7% [2] Price Index - The Price Index for Q3 came in at +3.8%, exceeding expectations of +2.7% and the previous quarter's +2.1% [2] Durable Goods Orders - Preliminary Durable Goods Orders for October showed a decline of -2.2%, below the consensus estimate of -1.1%, marking the fourth negative print of 2025 [4] - Excluding volatile Transportation costs, Durable Goods Orders showed a slight increase of +0.2% in October, the weakest since April [5] Market Implications - Stronger economic growth and productivity may hinder the likelihood of Federal Reserve rate cuts, particularly at the upcoming January FOMC meeting, which had a low probability of a cut prior to these reports [6] - Market participants are reacting to these economic indicators, leading to a decline in indexes ahead of the trading session [6] Upcoming Data - December Consumer Confidence is expected to improve to 91.7 from 88.7, and Industrial Production and Capacity Utilization numbers for November are anticipated to be relatively muted [7]