Economic Highs, Tech Moves, and Student Loan Worries: A Market Roundup

The U. S. economy showed surprising strength, growing by 4. 3% in the third quarter. This growth, revealed in a delayed report due to the government shutdown, came despite a recent dip in consumer sentiment. Spending, however, remained robust, climbing to 3. 5% from the previous quarter's 2. 5%. Holiday shopping also saw a rise, with a 4. 2% increase in retail spending. E-commerce and electronics led this surge, but it came at a cost. About 37% of Americans took on holiday debt, averaging $1, 223, up from last year's $1, 181. This economic growth has made investors doubt if the Federal Reserve will cut interest rates early next year. Meanwhile, the stock market hit new highs, with the S&P 500 setting a record. Tech giants like Alphabet, Nvidia, Broadcom, and Amazon drove this rally. Precious metals also continued their record-breaking streak. Across the Atlantic, BP sold a 65% stake in its lubricants business, Castrol, for $6 billion to Stonepeak. The market will close early for Christmas Eve, with stock markets shutting at 1 p. m. ET and bond markets at 2 p. m. ET.On a different note, student loan borrowers in default may face wage garnishment starting early January. The Education Department plans to send notices to around 1, 000 borrowers the week of January 7. Over 5 million borrowers are currently in default, highlighting the ongoing student debt crisis. In trade news, the U. S. delayed new tariffs on Chinese semiconductor imports until June 2027. This 18-month delay aims to ease trade tensions between the two countries. The initial investigation found unfair trade practices by China in the semiconductor industry. In the tech world, ServiceNow is boosting its cybersecurity with a $7. 75 billion acquisition of Armis. This move is part of ServiceNow's plan to enhance its AI capabilities. CEO Bill McDermott highlighted that this acquisition will create the only AI control tower driving workflow and business outcomes. Lastly, Waymo is updating its fleet to better handle future outages after a recent blackout in San Francisco disrupted its driverless car service.