US stocks have bolted higher on the strength of a solid report on US economic growth and banner results from Facebook that raised hopes about other technology giants.
At the closing bell on Thursday, the Dow Jones Industrial Average jumped 109.43 (0.70 per cent) to 15,848.22.
The broad-based S&P 500 gained 19.98 (1.13 per cent) to 1,794.18, while the tech-rich Nasdaq Composite Index soared 71.69 (1.77 per cent) to 4,123.13.
Commerce Department data showed US economic growth at 3.2 per cent in the fourth quarter, above the 3.0 per cent projected by analysts. Analysts were particularly cheered by a 3.3 per cent rise in consumer spending.
The GDP data “shows further strength,” said Brent Schutte, market strategist at BMO Private Bank. “Things are getting a lot better.”
Facebook helped lift the Nasdaq, rising 14.2 per cent on a huge jump in earnings due to stronger advertising revenues.
The Facebook report also spurred buying in Twitter, Amazon and Google, the latter two which report earnings after the market close Thursday.
“To me it’s kind of a bounce-back from the drubbing we’ve had the last few days,” said Schutte, alluding to the largely downward lurch of equity markets since last Thursday.
