According to the Bureau of Economic Analysis, the U.S. economy grew 4.3% year-on-year in Q3, beating analyst expectations of 3.2%. This robust performance lifted investor sentiment ahead of Christmas, pushing the S&P 500 Index to an intraday record high of 6,937.32 points, signaling optimism about the economic outlook.
Reports say that Federal Reserve officials cite AI data center spending, alongside consumer demand and fiscal support, as factors underpinning their projections for stronger growth in 2026.
Business investment rose at a 2.8% annual rate in Q3, driven partly by spending on computer equipment and data centers to support AI workloads. Policymakers are signaling a gradual series of interest-rate cuts in 2026, anticipating robust growth and inflation remaining above target.