On Tuesday, Wall Street’s main indices saw slight gains, despite better-than-expected U.S. growth figures that tempered expectations for further interest rate reductions. Both gold and silver reached new record highs.
The U.S. economy expanded at an annualized rate of 4.3% in the third quarter, surpassing predictions, driven by increased consumer and government spending.
Recent weeks have seen stock prices rise amid hopes that the Federal Reserve may reduce borrowing costs further in 2026, fueled by data showing a rise in unemployment and easing inflation.
However, the impressive growth numbers might lead the Federal Reserve to reconsider further rate cuts in 2026.
Patrick O’Hare, an analyst from Briefing.com, noted, “The main takeaway from the report is that the U.S. economy was certainly running robustly in the third quarter,” which raises concerns about the Fed’s recent rate cuts and inflation risks.
At the opening of trading in New York, Wall Street indices dipped but gained ground during the morning session. Meanwhile, consumer confidence in the U.S. decreased in December as reported by the Confidence Board, indicating recession fears.
Investment analyst Bret Kenwell from eToro mentioned that while the GDP figures look promising, consumer sentiment is fraught with anxiety. Precious metals had already seen gains from expectations of further U.S. rate cuts, making them more appealing to investors.
