The US stock market recorded positive gains on Wednesday with the S&P 500 index closing at its highest level.
The S&P 500 growth index rose 0.8%, while the value index (IVX) was reported to remain stable.
The Dow Jones Industrial Average rose 0.16% to 79.73 points, the S&P 500 jumped 0.46% to 31.30 points, while the technology-focused Nasdaq rose 0.57% to 133.02 points.
This development was supported by positive US economic data, especially strong economic growth that drove rising bond yields and US economic growth.
According to the US Department of Commerce, Gross Domestic Product (GDP) grew at an annual rate of 4.3% in the third quarter of this year.
The rate was the fastest growth since the third quarter of 2023, beating economists' expectations of 3.3%. The performance was driven by stronger consumer spending.
Although the latest economic data was delayed by the 43-day government shutdown, most analysts expect economic growth to start slowing in the fourth quarter.
According to CME's FedWatch, the market is now pricing in a lower chance of a Federal Reserve (Fed) interest rate cut in January next year due to rising short-term bond yields.
Meanwhile, artificial intelligence (AI) stocks recorded positive returns after suffering a massive sell-off last week due to concerns about high valuations, as well as the impact of large capital expenditures on AI companies' profits.
Nvidia shares rose 3%, making them the biggest contributor to the S&P 500's rise.
Amazon.com, Alphabet and Broadcom each rose more than 1%.
However, other economic data showed a less encouraging performance as US consumer confidence fell in December due to concerns about jobs and income.
