U.S. Markets Rally to Session Highs as Atlanta Fed Trims Q3 GDP Growth Forecast

By / / Breaking News

Key Takeaways

  • The S&P 500 Index climbed 0.3% to hit a session high, while the NASDAQ 100 Index demonstrated significant intraday recovery, paring earlier declines to be down only 0.2% and also reaching a session high.
  • The Federal Reserve Bank of Atlanta's closely watched GDPNow model revised its third-quarter 2025 real GDP growth estimate downwards to 4.0% from its previous 4.2% forecast.
  • The market's resilience, particularly in technology-heavy sectors, suggests ongoing investor optimism despite the slight moderation in the economic growth outlook.

U.S. equity markets showed robust performance on Tuesday, November 25, with major indices rallying to session highs. The S&P 500 Index advanced by 0.3%, reaching its session peak, while the NASDAQ 100 Index staged a notable recovery, paring earlier losses to trade down just 0.2% and also hitting a session high. This positive intraday movement signals a strong rebound in market sentiment.

Concurrently, the Federal Reserve Bank of Atlanta released an updated estimate from its GDPNow model, a real-time tracker of U.S. economic growth. The model now projects third-quarter 2025 real GDP growth at an annualized rate of 4.0%. This figure represents a slight decrease from the 4.2% estimate maintained as recently as November 21.

The GDPNow model is a non-official forecast that provides a data-driven snapshot of economic activity, closely watched for its timely insights. The adjustment from 4.2% to 4.0% indicates a marginal moderation in the pace of economic expansion for Q3 2025, though the overall growth projection remains robust.

Despite the slight downward revision in the GDPNow forecast, market participants appear to be maintaining confidence. The strong intraday performance of both the S&P 500 and the NASDAQ 100 suggests that investors are weighing various factors, including corporate earnings and expectations for future Federal Reserve policy. The tech-heavy Nasdaq had experienced volatility in previous sessions but saw significant gains recently, indicating persistent interest in growth-oriented sectors. This resilience underscores a market that continues to seek upward momentum, even as economic indicators provide a nuanced picture of growth.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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