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S&P 500 Holds Near Records as Strong GDP Cools Hopes for Early Fed Cuts

Investing.com Logo Investing.com By Itai Smidt
S&P 500 Holds Near Records as Strong GDP Cools Hopes for Early Fed Cuts

The U.S. economy grew 4.3% in Q3, beating expectations and pushing Treasury yields higher, which dampens prospects for early Fed rate cuts in 2026. While strong consumer spending supports earnings, the market is rotating away from mega-cap tech toward financials, defense, and materials. The S&P 500 holds near records with modest gains, while the Nasdaq pauses after recent strength. Metals surge on structural demand, and GLP-1 leader Novo Nordisk rallies on FDA approval of its obesity pill.

Insights
NVDA   neutral

Up 2.37% but showing signs of rotation fatigue; AI leadership intact but investors no longer willing to pay premium prices after recent rallies; higher real yields compress multiples on growth stocks