Wall Street's major averages on Wednesday ended mixed, as stocks caught a late downdraft. Meanwhile, Treasury yields fell as investors bolstered bets that the Federal Reserve would start cutting rates in the near future and would be able to deliver a soft landing.

Markets opened higher after a "Goldilocks" second measure of Q3 GDP growth, but then gave up those gains after comments from Richmond Fed President Tom Barkin and JPMorgan (JPM) top boss Jamie Dimon tempered some of the positive sentiment. The three major averages held steady above the flatline after that, then moved lower about two hours into the close.

The tech-heavy Nasdaq Composite (COMP.IND) shed 0.16% to close at 14,258.49 points, having erased gains of nearly 1%. The benchmark S&P 500 (SP500) slipped 0.09% to settle at 4,550.58 points, while the blue-chip Dow (DJI) eked out gains of 0.04% to finish at 35,430.55 points.

Of the 11 S&P sectors, six closed in positive territory, led by Real Estate and Financials. Communication Services topped the losers.

Markets are still on track for their best month since July 2022. The advance has been driven by a general consensus that the Fed is done hiking rates and can deliver a soft landing - an event where inflation is curbed without compromising economic growth.

Those soft landing hopes were greatly strengthened after the Bureau of Economic Analysis before the opening bell released its second estimate of U.S. Q3 GDP growth, which was revised higher to +5.2% on an annualized basis from a prior reading of +4.9%. Moreover, the core personal consumption expenditures price index - the Fed's preferred inflation gauge - was revised lower.

Treasury yields were lower after the GDP estimate, as traders snapped up bonds. The longer-end 30-year yield (US30Y) was down 8 basis points to 4.45%, while the 10-year yield (US10Y) was down 7 basis points to 4.27%. The shorter-end more rate-sensitive 2-year yield (US2Y) was down 9 basis points to 4.65%.

See how Treasury yields have done across the curve at the Seeking Alpha bond page.

The GDP data also bolstered bets for rate cuts by the Fed. According to the CME FedWatch tool, markets now see a 44.46% chance that the central bank will cut its key rate by 25 basis points in March next year, compared to a 34.61% chance the previous day.

Market participants got a further idea about the state of the economy after the Fed's Beige Book report on regional activity arrived. The data showed that economic activity had slowed since the previous report.

"There have been other indications that, even though rate cuts might be on the table, rate hikes are not out of the question. In many respects, inflation remains stubbornly high and a strong jobs market suggests that consumers have not been adequately weakened. This uncertainty lends to the possibility that a hard landing could still be on the table. Such a scenario implies a recession and would be the least desired outcome of the slate of realistic ones that exist today," Daniel Jones, investing group leader of Crude Value Insights, told Seeking Alpha.

Turning to Wednesday's active movers, NetApp (NTAP) ended as the top S&P 500 (SP500) percentage gainer after Wall Street praised the data infrastructure firm's rising gross margins.

General Motors (GM) also ended among the top S&P percentage gainers after the carmaker reinstated its earnings guidance, while also unveiling a $10B share buyback program and plans to increase its common stock dividend by 33%.

"Even though General Motors (GM) saw shares skyrocket over 9% after management announced a new $10B share buyback program, automotive companies would be some of the most dangerous to wade into at this time. Utilities, insurance companies, and other more durable enterprises that are either interest rate agnostic or benefit from interest rates might be more sensible purchases," Jones added.

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