Gross domestic product grew at an annual rate of 4.1 percent in the third quarter, the fastest pace in almost two years, and exceeding the 3.6 percent pace reported earlier this month. Business spending was also stronger than previously estimated.

Stock rose on Friday, capping the best week for major indexes in months as unexpectedly strong data on economic growth increased confidence that the recovery was accelerating. Gross domestic product grew at an annual rate of 4.1 percent in the third quarter, the fastest pace in almost two years, and exceeding the 3.6 percent pace reported earlier this month.

Business spending was also stronger than previously estimated. Until recently, investors have viewed positive data as a negative because it suggested that the Federal Reserve would begin to trim its stimulus program. The central bank had said it would start tapering its monthly bond buying when certain economic indicators met its targets.

The Fed, however, said on Wednesday that it would pare its market-friendly monthly asset purchases by USD 10 billion to USD 75 billion, starting in January. It also suggested that its key interest rate would stay at rock bottom longer than previously promised.

“If tapering had not been announced, I don’t think this news would be as welcomed by the market as it is right now,” said Nicholas Colas, chief market strategist at the ConvergEx Group in New York.

“But now, there’s no real risk that there will be more tapering any time soon, and on top of that, growth is absolutely stronger than many were expecting.” Fed Chairman Ben Bernanke said that if US job gains continue as expected, then the bond purchases would be cut at a “measured” pace through much of next year, and would probably be wound down “late in the year, certainly not by the middle of the year.”

Massive volatility affected a number of notable names, including FedEx Corp and Electronics Arts Corp, in the final minutes of trading. About 6.47 billion shares traded on all US platforms, according to BATS exchange data, a rate that was far higher than other sessions this week.

The benchmark S&P 500 has soared more than 27 percent this year and is on track for its best year since 1997. The Fed’s aggressive economic stimulus program has been the major catalyst for this year’s rally.

The stock of Red Hat Inc jumped 14.5 percent to USD 56.10 and was the S&P 500’s best percentage gainer after the world’s largest commercial distributor of the Linux operating system reported third-quarter results above analysts’ estimates and raised its full-year forecast.