Investors react to good global economic news to lift the S&P 500 more than 0.6% into record territory early Friday afternoon.
A few reasons for the meteoric rise:
1) WASHINGTON RELIEF: Investors continue to feel relieved as fallout from the US government shutdown appears to be minimal. The worst case scenario for not reaching the deal in time included a recession projected to be deeper than that caused by the 2008 financial crises if the government could not pay it's debts.
Less severe scenarios included a downgrade on the government's credit rating which would have raised interest rates on everything from federal borrowing to home mortgages. All risks of a rise in interest rates looks to be removed.
2) CHINA SYNDROME: Third quarter data coming out of China is better than the most bullish of estimates. Coming off of 7.5% growth in the second quarter, Chinese growth was expected to slow. Instead, the country is growing at a 7.8% annualized clip. This bodes well for continued global growth as well as increasing US exports to China, thereby raising investor hopes.
3) CORPORATE EARNINGS: There's no better way to increase stock value than to see real corporate growth. Morgan Stanley and General Electric both exceeded Wall Street's earnings targets. Google enjoyed a 36% increase in profit to nearly $3 billion for the third quarter.