"The U.S. Department of Commerce says the economy grew 4.3% year over year in the third quarter of 2025, more than a full percentage point above economists' prediction of 3.2% growth. Granted, this news arrives later than expected, having been delayed by the government shutdown. Granted, too, the news covers only the period from July to September, before the government went into effect (and presumably slowed the economy significantly). Still, it's good news, and investors are treating it as such."
"On the negative side, we learned today that the Personal Consumption Expenditures price index, which the Fed uses most of all to gauge inflation, rose 2.8% in Q3, faster than the expected 2.1% rate. Core PCE rose 2.9%, more than the 2.6% expected. What does all of this mean for the stock market? Caveats aside, the data seem to suggest a stronger economy and higher inflation, both factors that would tend to take away arguments for the Fed continuing to cut interest rates."
The Vanguard S&P 500 ETF (VOO) rose 0.5% premarket after Commerce reported 4.3% year-over-year GDP growth in Q3 2025, above the 3.2% forecast. The Q3 reading was delayed by the government shutdown and covers July–September, prior to the shutdown's economic effects. Consumer spending increased 3.5% in Q3 versus 2.5% in Q2, aided by exports and government spending. The Personal Consumption Expenditures price index rose 2.8% in Q3 and Core PCE rose 2.9%, both above expectations. Stronger growth and higher inflation would reduce arguments for Fed rate cuts. Silver and gold hit intraday record highs.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]