Equities Advance on Strong US Economic Data; Yen Strengthens Amid Currency Intervention Signals
By Caroline Valetkevitch and Sinéad Carew
Published: December 23, 2025 | Updated: December 23, 2025
NEW YORK/LONDON – Global equity markets rallied on Tuesday following the release of better-than-expected U.S. economic data, while the Japanese yen firmed against the U.S. dollar after Tokyo issued strong warnings about potential currency intervention.
U.S. Stocks Hit New Highs
U.S. stock markets surged, with the benchmark S&P 500 closing at a record high of 6,909.79, an increase of 31.30 points or 0.46%. Growth stocks led the gains, pushing the S&P 500 growth index up by 0.8%. The Dow Jones Industrial Average rose 79.73 points (0.16%) to 48,442.41, while the Nasdaq Composite climbed 133.02 points (0.57%) to 23,561.84. MSCI’s global stock gauge also reached a fresh peak, advancing 4.61 points, or 0.45%, to 1,020.10, marking a record closing level as well.
Strong Economic Data Drives Market Optimism
The market rally was fueled by U.S. third-quarter GDP figures released after delays due to a federal government shutdown. The data revealed that the U.S. economy expanded at an annualized rate of 4.3%, significantly surpassing economists’ expectations of 3.3%, according to a Reuters poll. The growth was largely driven by robust consumer spending.
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, stated, "We’re still in this period of playing catch-up with economic data and GDP is dated… But it’s showing strength in the economy, and strength that’s above expectations."
European Markets Also Gain on Positive Developments
The pan-European STOXX 600 index ended the session up 0.34%, hitting a record closing level as well. Healthcare stocks buoyed the index after pharmaceutical heavyweight Novo Nordisk received U.S. Food and Drug Administration approval for its weight-loss pill. Novo Nordisk’s U.S.-listed shares surged 7.3%, reinforcing its leadership in the growing obesity treatment market.
Bonds Show Mixed Movement
The U.S. Treasury market exhibited mixed reactions. The yield on the benchmark 10-year Treasury note dipped slightly by 0.4 basis points to 4.167% from 4.171% late Monday, while the 30-year bond yield decreased by 1.8 basis points to 4.8252%. Conversely, the 2-year Treasury yield, which closely tracks investor expectations for Federal Reserve interest rate policy, climbed 2.9 basis points to 3.532%.
Yen Strengthens on Intervention Warnings
The Japanese yen strengthened against the U.S. dollar amid intensifying speculation that Tokyo may intervene to support its currency. Finance Minister Satsuki Katayama issued the strongest warning to date, stating that Japan has a free hand in managing excessive yen movements. This announcement followed the Bank of Japan’s expected rate hike in its December policy meeting last Friday.
As a result, the dollar weakened 0.47% against the yen, trading at 156.31. Meanwhile, the broader U.S. dollar index, which is a measure of the greenback against a basket of currencies including the euro and yen, fell 0.29% to 97.96. The euro gained 0.25%, reaching $1.1789. Precious Metals Hit Record Prices
Precious metals extended their record-breaking rallies. Spot silver climbed 3.49% to $71.43 per ounce, surpassing the $70 mark for the first time. Gold rose 1.02%, reaching $4,490.93 per ounce, while platinum soared approximately 7% to $2,269.25. Oil Prices Quietly Recover
Energy markets also benefited, with oil prices closing higher. U.S. crude advanced 0.64% (37 cents) to $58.38 per barrel, while Brent crude rose 0.5% (31 cents) to $62.38 per barrel. The gains were supported by concerns over potential sales of Venezuelan crude seized by the United States, combined with positive sentiment from the stronger U.S. economic data.
In summary, robust U.S. GDP growth has reinvigorated global equity markets, pushing key indexes to record levels. At the same time, the Japanese government’s assertive stance on yen intervention has strengthened the currency, reflecting concerns over currency volatility. Investors remain attentive as year-end trading continues in light volumes.
For ongoing market updates and detailed analysis, visit [Investing.com].