Economy Growth Causes Stocks to Rise

The U.S. economy grew 3.5% in the third quarter, which was much higher than predicted or expected. This was the first time that the economy has grown in a year. As soon as this news spread, the stock prices rose sharply. Javier C. Hernandez of The New York Times writes that,

By the time the markets closed, all the major averages had ridden the wave. The Dow Jones industrial average rose 199.89, or 2.05 percent, to end at 9,962.58. The Standard and Poor’s 500-stock index went up 23.48, or 2.25 percent, to 1,066.11. And the Nasdaq composite index, which is heavy with technology stocks, finished 37.94 higher, or 1.84 percent, closing at 2,097.55.

Hopefully this is a sign that the U.S. economy is recovering and his headed toward a future of further growth rather than contraction.