Trader Michael Iozzi, center, works on the floor of the New York Stock Exchange Monday, Dec. 16, 2013. U.S. stocks rose sharply on Monday, powered by two big corporate deals and news that suggests the economy is getting stronger. (AP Photo/Richard Drew)
Stocks raced higher after two down weeks, as investors warmed up to the idea that the economy is getting better.
Stocks have fallen lately after good economic news as investors worried that the Federal Reserve would think its stimulus was no longer needed. But Monday’s gains, driven by two corporate deals and a strong report on manufacturing, suggested that investors are focused more on growth and less on the central bank’s actions.
For a while, investors felt, “‘Oh my goodness, we won’t be able to survive without Fed support.’ But people are actually seeing that things really are getting better,” said Brad McMillan, chief investment officer Login to read more