United States benchmark averages advanced for a fourth consecutive session on Tuesday (Wednesday AEDT), with the S&P 500 closing at a record high as technology and artificial intelligence-related shares continued to outperform during a holiday-shortened trading week.
The Dow Jones Industrial Average added 79.7 points, or 0.2%, to finish at 48,442.4. The S&P 500 climbed 31.3 points, or 0.5%, to close at a fresh record of 6,909.8, while the Nasdaq Composite gained 133.0 points, or 0.6%, to end the session at 23,561.8.
Technology stocks led the gains, with Nvidia rising 3% and Broadcom up 2.3%, underpinning strength across the Nasdaq and broader market.
Investors continued to favour artificial intelligence-linked names, extending their recent run of outperformance.
Markets largely looked past stronger-than-expected economic data released earlier in the session. The Commerce Department reported that the U.S. economy expanded at a 4.3% annualised pace in the third quarter, well above expectations for 3.3% growth.
The delayed report, which had been postponed from its original 30 October release due to the record-breaking U.S. government shutdown, initially raised concerns that interest rate cuts from the Federal Reserve could be pushed further out.
Despite those worries, traders continued to bet that the central bank will lower its benchmark interest rate next year. Fed funds futures pricing indicated expectations for two rate cuts by the end of next year, according to the CME Group FedWatch Tool.
Sentiment was also shaped by fresh data from the Conference Board showing a further deterioration in consumer confidence. The index fell 3.8 points in December to 89.1, down from 92.9 in November and below market expectations of 91.
Looking ahead, trading volumes are expected to remain light. The New York Stock Exchange will close early on Wednesday at 1 pm ET (6 pm GMT) on Christmas Eve and will remain closed on Thursday for Christmas Day.
On the bond markets, U.S. Treasury yields edged higher. The 10-year yield rose 0.1% to 4.167%, while the 2-year yield increased 0.7% to 3.53%.
