Robust growth propels US stocks; Dow crosses 18,000 mark

Dubai: Better than expected growth data propelled stocks indices in the United States, the world’s largest economy, on Tuesday, extending gains from the previous sessions.

The Standard & Poor’s 500 climbed to hit a new record of 2,085.34, before trading 0.28 per cent higher at 2,084.34. The Dow Jones Industrial Average topped 18,000 points, and last traded at 18,012.84, up 0.30 per cent. US equities jumped 5 per cent in the previous three sessions.

US GDP surged by 5 per cent in the third quarter, expanding at the fastest pace since the same period of 2003, as US consumers and businesses spent more than previously estimated.

The S&P 500 index has gained 16 per cent so far in the year, while the Dow Jones Industrial Average has gained 12.8 per cent.

Stocks started to rally last week after the Fed said it will be patient on the timing of a rate increase even as US growth shows signs of accelerating. Chair Janet Yellen said any spillover from the situation in Russia is likely to be small, while the central bank’s policy statement didn’t mention turmoil sparked by tumbling oil prices.

The Dow Jones Industrial Average has risen about 175 per cent during the five-year bull market that began in March 2009, propelled by better-than-estimated corporate results and three rounds of Fed bond purchases. The S&P 500 has more than tripled in that time, according to Bloomberg.

Brent crude reversed early gains to trade almost flat at $60.12 per barrel.