Wall Street Traders Take GDP Report in Stride: Markets Wrap

(Bloomberg) — Stock futures remained higher after the latest snapshot on the world’s largest economy did little to alter bets on the Federal Reserve rate path.

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S&P 500 futures rose 0.3%. The yield on 10-year Treasuries declined two basis points to 4.51%. The Bloomberg Dollar Spot Index fell 0.1%.

The US economy ended 2024 with solid, yet softer growth as a strike at Boeing Co. and leaner inventories diminished a generous tailwind from consumer spending. Inflation-adjusted gross domestic product increased an annualized 2.3% in the fourth quarter after rising 3.1% in the prior three-month period, according to the government’s initial estimate published Thursday. The median forecast in a Bloomberg survey of economists called for a 2.6% growth.

Corporate Highlights:

• The collision between an American Airlines Group Inc. regional jet and a military helicopter near Ronald Reagan airport in Washington left no survivors on board the two aircraft, authorities said, making it one of the most deadly US air disasters in decades.

• Tesla Inc. plans to launch a long-promised robotaxi business and get back to growing vehicle sales after a year of decline in both deliveries and earnings.

• Microsoft Corp. said its cloud-computing business will continue to grow slowly in the current quarter as the company struggles to build enough data centers to handle demand for its artificial intelligence products.

• Meta Platforms Inc. Chief Executive Officer Mark Zuckerberg exuded confidence in his company’s artificial intelligence strategy, saying 2025 will be a “really big year” in which its AI assistant will become the most widely used in the industry.

• Caterpillar Inc. warned that revenues will be “slightly lower” in 2025 as demand concerns weigh on the outlook of the heavy equipment maker.

Key events this week:

• US personal income & spending, PCE inflation, employment cost index, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures rose 0.3% as of 8:30 a.m. New York time

• Nasdaq 100 futures rose 0.5%

• Futures on the Dow Jones Industrial Average fell 0.1%

• The Stoxx Europe 600 rose 0.6%

• The MSCI World Index rose 0.1%

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%

• The euro fell 0.1% to $1.0410

• The British pound fell 0.1% to $1.2438

• The Japanese yen rose 0.7% to 154.11 per dollar

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