U.S. stocks rallied as a report showed faster-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.
Visa Inc. and MasterCard Inc. (MA) added more than 9 percent each as the two largest U.S. payment networks reported results that topped estimates. Bristol-Myers Squibb Co jumped 8.9 percent after a drug improved survival rates for cancer patients. Energy shares retreated as oil resumed a selloff after U.S. production rose to the highest level since the 1980s.
The Standard & Poor’s 500 Index (SPX) rose 0.6 percent to a one-month high of 1,994.65 at 4 p.m. in New York, closing within 1 percent of its last record on Sept. 18. The Dow Jones Industrial Average rallied 221.11 points, or 1.3 percent, to 17,195.42. Visa is the Dow’s largest member by weighting. The Russell 2000 Index increased 0.8 percent and the Nasdaq Composite Index climbed 0.4 percent