The benchmark S&P 500 index reached a new all-time closing high after data showed the U.S. economy grew at an annualized rate of 4.3% in Q3, significantly exceeding market expectations. This led to a mixed performance across Asia-Pacific markets on Wednesday.
A preliminary U.S. government report indicated that inflation remains elevated, while a separate survey revealed a further decline in consumer confidence in December. The U.S. economy had expanded at a 3.8% annualized pace in Q2.
Trading was subdued in Asia-Pacific markets as most global exchanges will close for Christmas on Thursday. U.S. markets will also close early on Christmas Eve and remain shut for the holiday.
Key market performances: - Tokyo's Nikkei 225 fell 0.1% to 50,344.10 - South Korea's KOSPI dipped 0.2% to 4,108.62 - Hong Kong's Hang Seng rose 0.2% to 25,818.93 - Shanghai Composite gained 0.5% to 3,940.95 - Australia's S&P/ASX 200 declined 0.4% to 8,762.70 - Taiwan's TAIEX edged up 0.2% - India's SENSEX rose less than 0.1%
Gold and silver extended gains after hitting record highs earlier in the week amid geopolitical tensions. Spot gold rose 0.3% to $4,525.20/oz (up 70% YTD), while silver climbed 1.6%.
U.S. stock futures edged lower in early Wednesday trading.
On Tuesday, tech stocks propelled the S&P 500 up 0.5% to 6,909.79 despite most components declining. The Dow Jones Industrial Average rose 0.2% to 48,442.41, while the Nasdaq Composite gained 0.6% to 23,561.84.
Notable movers: - Nvidia shares rose 3% - Alphabet gained 1.5% - Novo-Nordisk A/S (NVO) surged 7.3% after U.S. regulators approved its oral version of weight-loss drug semaglutide, the first daily obesity treatment pill.
The economic update showed inflation remains above the Fed's target, with the core PCE price index rising to 2.8% annualized in Q3 from 2.1% in Q2.
Investors expect the Fed to hold rates steady in January amid persistent inflation concerns, weakening consumer confidence, cooling labor markets, and softening retail sales.
In currencies: - USD/JPY fell to 155.96 after Japanese officials hinted at intervention - EUR/USD slipped slightly to 1.1797
Oil prices edged up as traders monitored potential supply disruptions in Venezuela and Russia: - WTI crude rose 20 cents to $58.58/barrel - Brent crude gained 17 cents to $62.03/barrel
