US stocks edged higher in thin pre-holiday trading as investors weighed strong growth against mixed signals in demand today. The S&P 500 rose 0.3% near 6,900, extending a four-day run. The Nasdaq 100 gained 0.3%, while the Dow added 0.1% and the Russell 2000 slipped 0.6%.

European shares also advanced, with the Stoxx Europe 600 up 0.3% and the MSCI World Index up 0.4%. Investors tracked headlines pointing to easing US-China tensions and a reported Broadcom agreement linked to OpenAI work. Those themes supported chip and software names, even as small-cap shares lagged for year-end portfolios today.

Traders focused on how fresh data could reshape Federal Reserve rate-cut expectations for 2026. Two-year Treasury yields held above 3.5% and last traded around 3.53%. The 10-year yield stayed near 4.17%, keeping financial conditions tight.

Tech Leads as Data Shifts Rate-Cut Pricing

A narrow technology rally lifted large-cap benchmarks, and the Bloomberg Magnificent 7 total return index rose 0.8%. Lower trading volume signaled caution ahead of the Christmas holiday. Still, investors kept stocks close to record levels despite fewer near-term rate-cut bets.

Third-quarter US gross domestic product rose at a 4.3% annualized pace, following 3.8% growth in the prior quarter. The reading supported views that household spending remains firm. At the same time, weaker consumer confidence later in the session helped Treasuries recover from earlier lows.

Orders for business equipment fell more than forecasts suggested, adding a note of restraint for capital spending. However, non-defense capital goods shipments proved stronger than expected, pointing to momentum entering the fourth quarter. Industrial production showed only a modest gain across October and November as manufacturing lagged.

Currencies and Rates Respond to Policy Signals

The Bloomberg Dollar Spot Index fell 0.3%, leaving the dollar on track for its worst year since 2017. The euro rose 0.1% to $1.1778, while sterling climbed 0.2% to $1.3484 and traded near $1.35. In Japan, the yen strengthened 0.5% to 156.30 per dollar after official comments warned against moves that diverge from fundamentals.

In Europe, government bonds firmed as yields eased. Germany’s 10-year yield fell four basis points to 2.86%, and the UK 10-year yield declined three basis points to 4.51%. US long-end rates stayed steady, with the 30-year yield little changed at 4.83%.

Money markets pared back expectations for early 2026 easing. Pricing implied less than a 20% chance of a Fed cut in January. Investors also added new short positions across US stock futures last week, leaving net positioning near neutral.

Commodities and Crypto Trade in Tight Ranges

Oil prices rose as traders monitored geopolitical headlines and demand prospects. West Texas Intermediate crude added 0.3% to $58.16 a barrel. Gold outperformed, with spot prices up 0.8% to $4,477.82 an ounce as the dollar weakened.

Crypto markets moved lower alongside broader risk pricing. Bitcoin slipped 0.1% to $88,098.43, and Ether fell 0.9% to $2,959.08. Traders also tracked corporate headlines. They focused on a large cybersecurity deal, drug safety news, jury awards, and regulatory moves across airlines, retail, and Europe.

Corporate Highlights

• ServiceNow agreed to buy cybersecurity startup Armis in a deal valued at $7.75 billion, marking its largest acquisition.

• Ford scaled back parts of its EV plans while increasing focus on battery production for energy storage projects.

• Equinor and Ørsted said they are engaging US authorities after receiving work-suspension orders linked to security concerns for offshore wind projects.

• Saks Global Enterprises is weighing Chapter 11 as a last-resort option ahead of a debt payment of more than $100 million due this month.

• Samsung-owned Harman agreed to buy a driver-assistance business from ZF Group for €1.5 billion, as suppliers restructure in Europe.

• S&P Global Ratings downgraded China Vanke to selective default, citing its onshore bond extension as distressed restructuring.

• Huawei’s Maextro S800 luxury sedan is outselling several high-end rivals in China, including Porsche and Mercedes-Benz models.

• Tokyo Electric Power (TEPCO) shares jumped after reports that it plans a data center near a nuclear plant slated for restart in Niigata.

US stocks held firm at near-record levels today as robust GDP growth signaled an economy that refuses to quit. At the same time, mixed signals in capital spending and consumer confidence offered a slight reality check. 

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