Why does a 4.3% US GDP print reduce odds of near-term rate cuts?

Stronger US GDP means demand is holding up, which can slow the pace of disinflation. The Fed wants clearer evidence that core inflation is moving toward 2% and wage growth is cooling. Faster growth risks sticky inflation, so policymakers may wait longer before cutting to avoid reigniting price pressures.

How could this US GDP surprise affect the S&P 500 near term?

A strong US GDP backdrop supports revenue and earnings, which helps the index. But if the market prices fewer cuts, yields can rise and cap valuations, especially in long-duration tech and rate-sensitive groups. Expect choppy trading near highs, with leadership rotating toward quality cyclicals and cash-flow-strong names.

Which sectors tend to benefit if Fed rate cuts are delayed?

Banks, energy, and industrials can hold up if growth stays firm and the curve stabilizes. Value cyclicals with better balance sheets often fare well. Utilities, REITs, homebuilders, and high-multiple, no-profit tech are more vulnerable because higher discount rates weigh on valuations and financing costs.

What key levels should S&P 500 traders watch now?

Watch resistance near the Bollinger upper band around 6,924 and the Keltner upper near 6,960. Initial support sits near the 50-day average at 6,774, with deeper support around the 200-day at 6,247. ATR near 70 suggests normal daily swings near 1%, useful for sizing stops and position risk.

Global Market Insights

^GSPC Today: December 24 — Strong Q3 GDP dims rate-cut hopes

ByHuzaifa Zahoor December 24, 2025December 24, 2025

US GDP jumped to a 4.3% annualized pace in Q3, the fastest in two years. The GDP report shows stronger consumer spending and exports, which lifts growth but reduces hopes for quick Fed rate cuts. Stocks tied to higher rates may feel pressure even as the S&P 500 sits near record levels. December confidence weakened, so spending may cool into Q1. We break down what the growth surprise means for ^GSPC, sectors, and risk management for U.S. investors. Read the full context here source.