Stocks fall after strong GDP report dampens outlook for Fed rate cuts

Stocks fell slightly on Tuesday after delayed economic data came in well above expectations, signaling that the U.S. economy may be holding up better than originally thought.

The Commerce Department reported that the U.S. economy expanded at 4.3% pace in the third quarter, much better than the 3.2% estimate that economists polled by Dow Jones had forecast.

The report β€” which was postponed from its initially planned release date of Oct. 30 because of the record-breaking U.S. government shutdown – might have spooked investors into believing an interest rate cut from the Federal Reserve in early 2026 is less likely. In fact, following the report’s release, fed funds futures traders increased their bets a bit that the central bank would hold rates steady at its January and March meetings, the CME FedWatch Tool showed.

https://www.cnbc.com/2025/12/22/stock-market-today-live-updates.html

Uh-oh! It looks like you're using an ad blocker.

Our website relies on ads and the generous support of readers like you to keep delivering free, high-quality content. Right now, we are facing serious funding challenges and we need your help more than ever. Disable your ad blocker and this message will vanish. You can also sign up for a membership to enjoy an ad-free experience while supporting our work: https://citizenwatchreport.com/plans/subscriptions/ Your support helps us stay independent, continue our work, and keep content free for everyone. We truly appreciate your understanding and thank you for standing with us.