Wall Street's Rollercoaster: Choppy Trading Amid Economic Surprises

Wall Street saw minimal changes in trading as Treasury yields rose following unexpected economic growth in the U.S. The Dow slightly dipped, while the S&P 500 and Nasdaq showed modest gains. Technology stocks rebounded, leading to hopes for a 'Santa Claus rally' amid seasonal trading slowdowns.

Wall Street's major indexes experienced little fluctuation during Tuesday's volatile trading, halting after three days of steady gains as Treasury yields ascended due to stronger-than-anticipated economic data. The U.S. economy's faster-than-expected growth in the third quarter, powered by solid consumer spending, saw GDP rise at an impressive 4.3% annualized rate, surpassing economists' 3.3% forecast.

The 10-year U.S. Treasury yield climbed to a week-plus high of 4.19%, with the dollar paring its losses. Traders continued to predict at least two 25-basis-point interest rate cuts next year, per LSEG data, although the probability of the first reduction occurring as early as January fell slightly. Meanwhile, consumer confidence data awaited release later in the day.

Market activity saw the Dow Jones Industrial Average drop 54.67 points, S&P 500 gain 4.11 points, and Nasdaq Composite rise 17.52 points. Gains in six out of eleven S&P sectors were noted, led by energy and communication services, while consumer staples and real estate underperformed. Analysts eye the potential for a 'Santa Claus rally' as U.S. stocks maintain their growth trajectory, poised for significant year-end moves.

(With inputs from agencies.)