Stocks jumped at the opening bell, as international rallies helped offset a shrinking US economy, the Wall Street Journal reports. Gross domestic product shrank at a seasonally adjusted 0.3% annual rate from July to September; the not-as-bad-as-feared figure sent the Dow up 201 points at the open before dipping back downward. The S&P and Nasdaq saw 1.8% and 2.5% gains of their own.
The rally signaled “renewed optimism that the Fed may be finally getting a handle on the credit crisis,” analysts told MarketWatch. Though the GDP figure was the worst since 2001’s 1.4% plunge, it was slightly better than the 0.5% decline analysts expected. Oil and gold futures rose, while the dollar was mixed against other major currencies.