Equities rise after strong US data, yen firms on currency warnings
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 17, 2025. REUTERS/Brendan McDermid
NEW YORK/LONDON, Dec 23 : Major stock indexes advanced on Tuesday after stronger-than-expected U.S. economic data, while the yen gained on the dollar after Tokyo signaled its readiness to support the battered currency.
The U.S. benchmark S&P 500 notched a record closing high with strength in growth stocks. Earlier, the pan-European STOXX 600 index also registered a record closing high on gains in the healthcare sector, after heavyweight Novo Nordisk secured U.S. approval of its weight-loss pill.
In precious metals, silver, gold and platinum set new records.
Data showed the U.S. economy grew faster than expected in the third quarter, driven by robust consumer spending. Early estimates showed gross domestic product increased at a 4.3 per cent annualized rate last quarter, far above economists' forecast for a rise at a 3.3 per cent pace, according to a Reuters poll.
"We're still in this period of playing catch-up with economic data and GDP is dated ... But it's showing strength in the economy, and strength that's above expectations," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
U.S. economic releases have been delayed by a record federal government shutdown.
On Wall Street, the S&P 500 rose 31.30 points, or 0.46 per cent, to 6,909.79, surpassing its December 11 close for a fresh record. The S&P 500 growth index finished up 0.8 per cent.
The Dow Jones Industrial Average rose 79.73 points, or 0.16 per cent, to 48,442.41, and the Nasdaq Composite added 133.02 points, or 0.57 per cent, to 23,561.84.
MSCI's gauge of stocks across the globe gained 4.61 points, or 0.45 per cent, to 1,020.10, which would also be a record close.
Earlier, the pan-European STOXX 600 index ended up 0.34 per cent.
Novo Nordisk's U.S.-listed shares finished up 7.3 per cent after the U.S. Food and Drug Administration approved its weight-loss pill, giving the Danish drugmaker a competitive edge in the fast-evolving obesity treatment market.
U.S. government bonds were a mixed picture.
The yield on benchmark U.S. 10-year notes fell 0.4 basis points to 4.167 per cent, from 4.171 per cent late on Monday and the 30-year bond yield fell 1.8 basis points to 4.8252 per cent.
But the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 2.9 basis points to 3.532 per cent, from 3.503 per cent late on Monday.
In currencies, the yen gained against the dollar as investors weighed the odds of an imminent intervention after Finance Minister Satsuki Katayama said Japan has a free hand in dealing with excessive moves in the yen, the strongest warning so far about Tokyo's readiness to intervene in the market to arrest sharp declines in the currency. The BOJ raised rates at its December policy meeting on Friday, as expected.
Against the Japanese yen, the dollar weakened 0.47 per cent to 156.31.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.29 per cent to 97.96. The euro was up 0.25 per cent at $1.1789.
In precious metals, silver extended its record rally and blew past the $70 an ounce mark for the first time, while gold and platinum also touched historic highs.
Spot silver was up 3.49 per cent at $71.43 while spot gold rose 1.02 per cent to $4,490.93 an ounce and spot platinum was up about 7 per cent at $2,269.25.
In energy markets, oil prices ended Tuesday's session higher as potential sales of Venezuelan crude seized by the United States weighed and investors assessed stronger-than-expected U.S. economic data.
U.S. crude settled up 0.64 per cent, or 37 cents at $58.38 a barrel, while Brent settled at $62.38 per barrel, up 0.5 per cent, or 31 cents.
