US markets today: Wall Street holds near record highs; strong GDP growth lifts bond yields
US stocks were largely steady near record levels in early trade on Tuesday after government data showed the American economy expanded at a stronger-than-expected pace in the third quarter, pushing Treasury yields higher even as equity moves stayed muted in holiday-thinned trading. The S&P 500 hovered close to its all-time high set earlier this month, while the Dow Jones Industrial Average slipped marginally and the Nasdaq was little changed. S&P 500 little changed and trading close to the record high it touched earlier this month. The Dow Jones Industrial Average fell 27 points, or 0.1%, while the Nasdaq composite was broadly flat, AP reported. Shares of Novo Nordisk rose after US regulators cleared a pill version of its blockbuster weight-loss drug Wegovy, marking the first daily oral treatment approved for obesity. US government figures showed economic growth in the July–September quarter surprised on the upside, reinforcing the view that the economy remains resilient despite higher interest rates and slowing factory activity. The data nudged bond yields higher, reflecting expectations that the Federal Reserve will stay cautious on further rate cuts. Ahead of the opening bell, futures for the S&P 500, Dow and Nasdaq were largely flat, signalling a subdued start as markets brace for early closes on Wednesday and a full shutdown on Thursday for Christmas. Among individual stocks, Novo Nordisk jumped sharply after US regulators approved a daily pill version of its blockbuster weight-loss drug Wegovy, marking the first oral medication cleared for obesity treatment. The approval lifted sentiment around the Danish drugmaker and the broader healthcare space. In commodities, gold extended its rally, touching fresh record levels as investors continued to seek safety amid global uncertainty. Silver also gained, while oil prices edged higher after the US Coast Guard said it was pursuing another sanctioned oil tanker in the Caribbean. Despite recent gains, crude prices remain sharply lower for the year, weighed down by weak demand indicators and soft factory activity. Attention in the days ahead will turn to a clutch of US economic reports scheduled during the shortened week. These include additional GDP estimates, consumer confidence data from the Conference Board and weekly jobless claims, which investors watch closely as a gauge of labour market health. Overseas markets were mixed. European stocks traded narrowly, with Germany’s DAX edging higher while France’s CAC 40 slipped. In Asia, Japan’s Nikkei was flat as the yen strengthened after officials warned of possible intervention to curb excessive currency weakness. Markets in China and South Korea posted modest gains, while Australian equities rose more than 1%.
