The S&P 500 rose for the fourth consecutive trading day, hitting a new all-time high, amid a narrow upward trend led by tech stocks. While gold continued to reach new highs, Bitcoin remained weak, consolidating in a narrow range between 86K and 88K yesterday.
US third-quarter GDP beat expectations; S&P 500 hits record high ahead of Christmas.
The U.S. Commerce Department reported that the U.S. economy grew at a rate of 4.3% in the third quarter, far exceeding economists' previous forecast of 3.2%. The report was originally scheduled for release on October 30 but was postponed due to the U.S. government shutdown.
Jose Torres of Interactive Brokers stated :
"The strongest economic growth in two years has boosted confidence that corporate profits will continue to grow strongly in 2026."
Another set of data released on Tuesday showed that U.S. business equipment orders fell more than expected in October. However, shipments of non-defense capital goods, including aircraft (equipment investment directly included in GDP), were stronger than expected, indicating some growth momentum in the fourth quarter.
Eric Teal of Comerica Wealth Management stated:
"The U.S. economy is in a just-right situation: economic growth is above potential, inflation has declined but remains high, and the labor market is slightly weak. The Federal Reserve is likely to maintain a dovish stance."
The New York Stock Exchange will close early at 1 p.m. Eastern Time on Christmas Eve (December 24) and will be closed on Christmas Day (December 25).
Bitcoin is consolidating in a narrow range; Friday's large number of options expiring could exacerbate volatility.
In the past 24 hours, the total market capitalization of cryptocurrencies fell 1.42% to $2.95 trillion.
While gold continued to hit new highs, Bitcoin remained sluggish, consolidating in a narrow range of 86K to 88K yesterday. Deribit options data shows that approximately $23 billion worth of contracts will expire on Friday (December 26th), which could exacerbate market volatility. Currently, implied volatility is compressed, with the DVOL index hovering around 43. Historically, when such a large number of contracts expire, volatility tends to rise due to position rollovers, hedging adjustments, and reduced liquidity during holidays.
This article, titled "US Stocks Hit New Highs on Christmas Eve, Bitcoin Consolidates in Narrow Range," first appeared on ABMedia, a ABMedia .
