Dow Surges Despite GDP Dip

Drop isn't as bad as feared, and rate cuts abroad cheer US traders
By Kevin Spak,  Newser Staff
Posted Oct 30, 2008 9:07 AM CDT
A specialist talks to a colleague on the floor of the New York Stock Exchange.   (AP Photo)
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(Newser) – 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.