World markets are mixed after the S&P 500 hits a record high, buoyed by strong US economic data

Global Markets Mixed as S&P 500 Hits Record High

Global stock markets showed mixed performance on Wednesday following the S&P 500’s climb to another record high, buoyed by a stronger-than-expected U.S. economic growth report. The American economy expanded at a robust 4.3% annual rate in the third quarter from July to September, significantly outpacing analyst forecasts.

Futures for major U.S. indexes suggested a cautious opening, with S&P 500 and Dow Jones Industrial Average futures both down less than 0.1% ahead of a shortened trading day. U.S. markets will close early for Christmas Eve and remain shuttered on Christmas Day.

European markets displayed varying trends, with Britain’s FTSE 100 dropping 0.2% to 9,870.89, while France’s CAC 40 edged up 0.2% to 8,121.32. German markets remained closed for the holiday. Several major stock exchanges worldwide, including London, Paris, Hong Kong, and Australia, operated with reduced hours for the Christmas holiday.

Asian markets also delivered a mixed picture, with Japan’s benchmark Nikkei 225 slipping 0.1% to 50,344.10 and South Korea’s Kospi declining 0.2% to 4,108.62. Meanwhile, Hong Kong’s Hang Seng gained 0.2% to 25,818.93, and mainland China’s Shanghai Composite advanced 0.5% to 3,940.95. Australia’s S&P/ASX 200 dipped nearly 0.4% to 8,762.70.

The precious metals rally continued unabated, with gold rising 0.3% to $4,525.20 per ounce in early Wednesday trading. This extends the metal’s extraordinary year-to-date gains of approximately 70%, driven primarily by heightened geopolitical tensions. Silver also strengthened, climbing 1.6% and continuing its recent upward momentum.

Tuesday’s U.S. trading session saw technology stocks power the S&P 500 to a 0.5% gain, despite most index components declining. The Dow Jones Industrial Average added 0.2%, while the tech-heavy Nasdaq Composite rose 0.6%.

The government’s initial estimate of third-quarter growth revealed that inflation remains stubbornly high. The Federal Reserve’s preferred inflation gauge – the personal consumption expenditures (PCE) index – accelerated to a 2.8% annual rate, up from 2.1% in the second quarter. This persistent inflation could potentially complicate the Fed’s monetary policy decisions in coming months.

Consumer sentiment continues to show weakness, with confidence deteriorating further in December according to recent reports. Concerns about high prices appear to be weighing on American consumers, even as the economy demonstrates resilience.

Market participants are currently betting that the Federal Reserve will maintain current interest rates at its January meeting. Recent economic indicators paint a complex picture: elevated inflation and fragile consumer confidence exist alongside a gradually cooling labor market and weakening retail sales.

The dollar continued its slide against the Japanese yen on Wednesday, trading at 155.83 yen, down from 156.17 yen, after Japanese officials signaled possible intervention to address excessive currency movements. The euro held steady at $1.1797.

Oil markets saw modest gains as traders monitored potential supply disruptions in Venezuela and Russia. U.S. benchmark crude added 12 cents to $58.50 per barrel, while Brent crude, the international standard, gained 8 cents to $61.95 per barrel.

Investors will be closely watching the Labor Department’s weekly jobless claims report due later Wednesday, which serves as a key indicator of U.S. labor market conditions and potential economic shifts heading into the new year.