US markets are surging.
The S&P 500 just blasted through its all-time high, and the Dow crossed 18,000 for the first time ever.
The S&P is currently at 2,084 (+0.3%). The Dow is at 18,009 (+0.3%).
The S&P 500’s prior all-time high was set at 2,079 on Dec. 5. The Dow set an all-time high of 17,991 that same day.
The rally follows a strong upward revision to US GDP.
In Q3, the pace of GDP accelerated to 5.0%, which is the fastest pace since Q3 2003. This was up from an earlier estimate of 3.9%, and it was much stronger than the 4.3% forecast by economists.
Growth was driven by personal consumption, which was revised up to 3.2% from an earlier estimated of 2.2%.
“Growth won’t be quite as strong in the fourth quarter. Indeed, November’s durable goods orders figures suggest that business investment has slowed significantly, from 11.0% in the third quarter,” Capital Economics Paul Dales warned.
Dales cited today’s November durable goods order report, which disappointed. Orders unexpectedly fell 0.7% in during the month, which was much worse than the +4.0% expected by economists. Nondefense capital goods orders excluding aircraft, or core capex, went nowhere; economists were looking for 1.0% growth.
For now, traders and investors are enjoying the Santa Claus rally.