Stocks Little Changed as Fed Rate-Cut Odds Drop after Strong US GDP Report
Yahoo Finance·2025-12-23 15:14

Economic Indicators - The US Q3 real GDP rose by +4.3% (quarter-over-quarter annualized), exceeding expectations of +3.3% and up from Q2's +2.5% [3] - The Q3 GDP Price Index increased by +3.8% (quarter-over-quarter annualized), significantly higher than the expected +2.7% and up from Q2's +2.1% [3] - The Q3 core PCE Price Index rose by +2.9% (quarter-over-quarter annualized), aligning with expectations but up from Q2's +2.6% [3] Consumer Confidence and Manufacturing - The Conference Board's December US consumer confidence index decreased by -3.8 points to 89.1, below expectations of 91.0 [4] - The December Philadelphia Fed non-manufacturing index fell by -0.5 points to -16.8, weaker than the anticipated rise to -15.0 [4] - November US industrial production declined by -0.1% month-over-month, slightly below market expectations of +0.1% [6] - November manufacturing production fell by -0.4% month-over-month, also weaker than expectations of +0.1% [6] Durable Goods Orders - October durable goods orders decreased by -2.2% month-over-month, worse than the expected decline of -1.5% [5] - October durable goods orders excluding transportation rose by +0.2% month-over-month, slightly below market expectations of +0.3% [5] - October core capital goods orders (excluding transportation and defense), a proxy for capital spending, increased by +0.5% month-over-month, slightly above expectations of +0.3% [5] Market Performance - Stock indexes are mixed, influenced by a +3 basis point rise in the 10-year T-note yield following the strong Q3 GDP report [2] - The odds for a -25 basis point rate cut at the next FOMC meeting on January 28 were reduced to 13% from 20% due to the strong GDP report [2] - The "Magnificent Seven" stocks are mostly trading higher, providing some support to the broader market [2] - Seasonal factors are bullish for stocks, with historical data indicating that the S&P 500 has risen 75% of the time in the last two weeks of December, averaging a climb of 1.3% [6]