Latest Finance-Economy News
US Q3 GDP Accelerates 4.3% Annualized, Reigniting Inflation Concerns
The U.S. Bureau of Economic Analysis reported real GDP rose 4.3% annualized in Q3 2025, driven by stronger consumer spending, exports and government outlays, while investment fell; the PCE price index also rose, stoking concern about inflation and Federal Reserve policy implications.
Markets Rally on Growth — Stocks Hit Records as Yields Rise
U.S. equity benchmarks extended gains after the GDP print, with the S&P 500 and Nasdaq posting new highs amid strong AI-led tech momentum; Treasury yields moved higher on the data and market expectations for Fed policy.
Fed Rate-cut Odds Diminish After Hotter Growth and Sticky PCE
Higher-than-expected GDP and an uptick in core PCE have reduced expectations for an imminent Fed rate cut, with analysts noting the stronger data complicates the Fed’s easing timeline.
Consumer Confidence Dips Despite Robust Growth
Surveys show a slip in U.S. consumer confidence in December even as Q3 growth surprised to the upside, suggesting households are cautious despite resilient spending that powered GDP.
Corporate Profits Jump in Q3, Lifting Business Sector Returns
BEA data showed profits from current production increased substantially in Q3 2025, supporting higher equity valuations and reinforcing the link between corporate earnings and the GDP upside.
Energy Markets Watch: Oil Prices Mixed on Supply Signals and Demand Outlook
Global oil markets remained sensitive to supply cues and demand prospects as investors weigh stronger U.S. growth (boosting demand) against slower activity in parts of Asia; energy equities tracked broader market moves (market commentary synthesis).
China Economic Data and Trade Tensions Remain a Key Risk for Global Growth
Analysts highlight that ongoing trade frictions, tariff policy shifts and mixed Chinese activity present downside risks to the global outlook even as U.S. domestic demand remains strong.
Fixed Income: 10‑Year Treasury Yield Rises After Growth Surprise
Following the GDP release, the 10‑year U.S. Treasury yield ticked higher as investors priced lower near‑term easing prospects by the Fed, pressuring long‑duration assets.
AI Investment and Intellectual Property Spending Support Growth
Investment in intellectual property — including AI development — contributed to the Q3 GDP upside, reflecting heavy corporate capital allocation to AI and related technology projects.
Policy and Fiscal Outlook: Elevated Deficits and Structural Spending Set Tone for 2026
Commentary from macro strategists emphasizes that large fiscal packages and sustained deficits are shaping medium‑term inflation and growth dynamics, reinforcing the importance of policy settings alongside central bank decisions.