Key Takeaways
- U.S. Gross Domestic Product (GDP) surged to an annualized 4.3% in Q3, significantly exceeding the previous quarter's 3.8% and analyst estimates of 3.3%, indicating robust economic expansion.
- Inflationary pressures intensified in the U.S. during Q3, with the Core Personal Consumption Expenditures (PCE) Price Index rising to 2.9% and the GDP Price Index jumping to 3.8%, both surpassing previous figures and estimates.
- Canada's economy experienced a monthly contraction of 0.3% in October, matching estimates but reversing the previous month's growth, signaling a potential slowdown.
- Spot silver prices crossed the $70/ounce mark for the first time, reaching a new historical high driven by strong industrial and investment demand, tightening inventories, and geopolitical tensions.
- Novo Nordisk (NVO) CEO expressed strong interest in further mergers and acquisitions (M&A), coinciding with the FDA approval and anticipated early 2026 launch of its oral Wegovy pill, poised to expand the weight-loss market.
U.S. Economic Growth and Inflation Accelerate
The U.S. economy demonstrated significant strength in the third quarter, with Gross Domestic Product (GDP) expanding at an annualized rate of 4.3%, outperforming the previous quarter's 3.8% and analyst expectations of 3.3%. This robust growth was accompanied by a notable increase in U.S. Personal Consumption, which rose to 3.5% in Q3, up from 2.5% previously and exceeding the 2.7% estimate.
However, this strong economic activity also brought heightened inflationary pressures. The U.S. Core PCE Price Index for Q3 registered 2.9%, an increase from the previous 2.6% and meeting the 2.9% estimate. Similarly, the U.S. GDP Price Index for Q3 climbed to 3.8%, a substantial rise from the prior 2.1% and above the 2.7% estimate. These figures suggest that while the economy is growing, inflation remains a persistent concern for policymakers.
In the labor market, there was a slight deceleration in job growth. The U.S. ADP Employment Change Weekly reported 11.50K new jobs, down from the previous 16.25K and a revised 17.5K from four weeks prior. This indicates a moderation in the pace of hiring, even as other economic indicators show strength.
Canadian Economy Shows Signs of Slowdown
In contrast to the U.S., Canada's economy showed signs of a slowdown in October. The Canadian GDP (Month-over-Month) contracted by 0.3%, matching estimates but a reversal from the previous month's 0.2% growth.
On a year-over-year basis, Canada's GDP (YoY) for October grew by 0.4%, a decrease from the previous 1.0% but slightly above the 0.3% estimate. This mixed performance suggests a cooling economy, which could influence future monetary policy decisions by the Bank of Canada.
Novo Nordisk Eyes M&A Amid Expanding Weight-Loss Market
Pharmaceutical giant Novo Nordisk (NVO) is actively pursuing growth opportunities, with CEO Maziar Mike Doustdar stating the company is "absolutely" interested in more mergers and acquisitions. This strategic push comes as the company anticipates significant expansion in the weight-loss market.
The market outlook is bolstered by the FDA's recent approval of Novo Nordisk's oral Wegovy (semaglutide) pill, marking the first daily oral medication for obesity. This new pill is expected to launch in the U.S. in early January 2026 and could broaden access to weight-loss treatments, potentially expanding the market beyond injectable options.
Silver Reaches Record High; Geopolitical and European Developments
In commodity markets, spot silver prices achieved a historic milestone, crossing $70 per ounce for the first time. This surge is attributed to strong industrial and investment demand, tightening inventories, geopolitical tensions, and expectations of further U.S. interest rate cuts.
Geopolitical tensions also saw developments, with conflicting statements regarding the Gaza Strip. Despite a headline suggesting Israel's Defence Minister Katz had "no intention of establishing settlements in Gaza," multiple reports indicate that Israeli Defence Minister Israel Katz vowed to establish new military-agricultural outposts in northern Gaza and stated Israel would not fully withdraw from the territory. These declarations contradict previous statements by Prime Minister Benjamin Netanyahu and have drawn criticism from organizations like Peace Now.
Meanwhile, in Europe, France's fractured parliament is debating an emergency bill designed to prevent a U.S.-style government shutdown next week. The legislative action follows the collapse of negotiations on the 2026 budget, forcing the government to seek a temporary measure to ensure the continuity of public services into the new year.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.