Stocks rose Tuesday as traders continued to bet on the Federal Reserve lowering its benchmark rate next year despite the release of new economic data that came in well above expectations.
The Dow Jones Industrials inched up 62.83 points to greet noon EST at 48,425.51.
The S&P 500 took on 19.52 points to 6,898.01.
The NASDAQ jumped 99.88 points to 23,528.71. All three major averages were on pace for their fourth straight winning session.
The much-broader index is coming off of its third winning session, boosted by a 1.5% jump in chipmaking giant Nvidia and advances in Micron and Oracle.
Ten out of 11 sectors saw gains in the session. Materials and financials were the top performing sectors, with Newmont and Freeport-McMoRan jumping 3% as gold and silver futures hit records.
The Commerce Department reported that the U.S. economy expanded at 4.3% pace in the third quarter, much better than the 3.2% estimate that economists polled by Dow Jones had forecast.
The report — which was postponed from its initially planned release date of Oct. 30 because of the record-breaking U.S. government shutdown – might have spooked investors into believing an interest rate cut from the Federal Reserve in early 2026 is less likely.
Despite Fed funds futures traders increasing their bets slightly following the report that the central bank would hold rates steady at its January and March meetings, they were still largely pricing in two rate cuts by the end of next year.
The New York Stock Exchange will close early on Wednesday at 1 p.m. ET on Christmas Eve and will be closed Thursday for Christmas Day.
Prices for the 10-year Treasury gained back ground, lowering yields back to Monday’s 4.17%. Treasury prices and yields move in opposite directions.
Oil prices regained seven cents to $58.08.
Gold prices hiked $31.60 to $4,501.00
