US stocks jump as downward revision to GDP growth boosts rate-cut prospects

• US stocks jumped on Thursday, rebounding from the prior session's steep dive.
• Third-quarter GDP growth was revised down to 4.9% from a prior reading of 5.2%.
• That indicated the economy isn't as hot as once thought, potentially giving the Fed more breathing room on rates.

US stock markets jumped on Thursday, clawing back some losses from Wednesday's sharp pullback, as revised GDP figures gave investors more confidence that the Federal Reserve will cut interest rates next year.

In the third quarter, the economy grew at an annual rate of 4.9%, down from a previous reading of 5.2%. This was largely driven by a downward revision in consumer spending, the Bureau of Economic Analysis said.

The change, coming below estimates, indicated the economy isn't as hot as once thought, potentially giving the Fed more breathing room on rates.

Friday will see the release of the personal consumption expenditures price index, the Fed's preferred inflation gauge.

Here's where US indexes stood at the 4:00 p.m. closing bell on Thursday: 

• S&P 500: 4,746.75, up 1.03%
• Dow Jones Industrial Average: 37,404.35, up 0.87% (322.35 points)
• Nasdaq Composite: 14,963.87, up 1.26%

Here's what else happened today: 

• Beijing and Moscow have almost completely wiped the dollar from their bilateral trade, Russia's prime minister said.
• Mortgage rates fell to their lowest in six months amid Fed cut optimism.
• The US is now producing more oil than any country in history, S&P Global said.
• History shows that the "Santa Claus rally is real" - here's why markets could reach new records next week.
• Commercial real estate could be facing the biggest crash since 2008, with billions in losses

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil slumped 0.69% to $73.71 a barrel. Brent crude, the international benchmark, climbed 1.06% to $79.08 a barrel. 
• Gold ticked up 0.57% to $2,043.64 per ounce. 
• The 10-year Treasury rose 1.5 basis points to 3.89%.
• Bitcoin stayed essentially flat at $44,668.