Latest Finance-Economy News
US Stocks Rise at Start of Holiday-Shortened Week
US stocks closed slightly lower on Friday in quiet post-Christmas trading, with S&P 500 down less than 0.1% to 6,929.94 amid light volume. The S&P 500 has climbed nearly 18% in 2025, boosted by Trump deregulatory policies and AI optimism.
Gold and silver prices rose, with silver up 8% to $77.20 an ounce due to safe-haven demand and supply issues.
S&P 500 Gains 1.4% for Week, Up 17.8% YTD
The S&P 500 rose 1.4% last week, up 17.8% year-to-date, while Dow gained 1.2% (up 14.5%). Semiconductors jumped 2.0% (up 44.7% YTD), and gold index surged 4.3% (up 171.3%).
Banks and utilities also advanced amid ongoing economic strength.
US Q3 GDP Grows 4.3%, Beats Expectations
US GDP expanded 4.3% in Q3, far above 3.2% forecast, driven by 3.5% consumer spending rise. Exports and government spending boosted growth, defying recession fears.
Corporate profits surged $166.1 billion, up 4.2%.
US Economy Powers Through Trade and Immigration Shocks
US economy outperforms peers despite 2025 trade shocks and slowdown expectations, fueled by persistent consumer spending. Job market cools but spending holds amid high prices and pessimism.
Airlines forecast record 2.9 million daily holiday passengers, up 1.5%.
Trump Tariffs Trigger $2.5 Trillion Market Losses
President Trump's April tariffs of 10-50% on trading partners caused $2.5 trillion in global market losses before partial rollback. Aimed to boost manufacturing and jobs, but raised affordability concerns.
Tariffs highlighted as top 2025 economic issue alongside inflation.
Consumer Spending Resilient but K-Shaped Divide Emerges
Robust consumer spending drove Q3 growth despite sour sentiment and budget strains for lower-income households. Wealthier Americans thrive while others face rising costs in weakening jobs market.
Overall economy shows resilience vs. affordability challenges.
Gold and Silver Surge on Safe-Haven Demand
Silver rose nearly 8% to $77.20/oz and gold up 1.1%, fueled by Fed rate cut expectations and dollar weakness. Precious metals gained amid government shutdown worries and supply constraints for silver.
Miners like Freeport-McMoRan climbed 2.2%.
Japan to Invest $550 Billion in US Under Trade Deal
Japan and US accelerate $550 billion Japanese investment initiative from Trump trade deal to cut tariffs. First project announcement expected soon, boosting bilateral ties.
Initiative aims to lower US-imposed tariffs.
Target Shares Rise on Activist Investor Stake
Target stock rose 3.1% after Financial Times reported activist investor taking a stake. Move comes amid retail sector dynamics in strong consumer spending environment.
Reflects ongoing M&A interest in year-end markets.
Oil Prices Fall as Treasuries Steady
US crude fell 2.8%, Brent 2.6% in Friday trading. 10-year Treasury yield edged to 4.13%, holding steady.
Markets in Asia and Europe mostly closed for holidays.
AI Investments Buoy Markets, Shape 2026 Themes
AI optimism propelled S&P 500 nearly 18% and Nasdaq higher in 2025. Emerges as top trend alongside tariffs, eyed for 2026 investment themes.
Generative AI tools advanced rapidly.
Mixed Global Indicators: Canada GDP Down, China Rates Steady
Canada's GDP declined, China's Loan Prime Rate unchanged, Japan inflation mixed. Reflects varied global economic signals amid US strength.
Holiday-shortened trading impacts volumes worldwide.