"They had to get out of the way," said Quincy Krosby, market strategist with Prudential Financial. "The more the market obsessed about when the Fed was going to pull back, the more the market couldn't focus on anything else, like the improving economy."
Friday's gross domestic product estimate was the latest report to show unexpected strength in the U.S. economy. The 4.1 percent annualized growth rate is the fastest since 2011. More importantly, most of the increase came from consumer spending, a key part of the U.S. economy.
In other markets, the yield on the benchmark U.S. 10-year Treasury note fell to 2.89 percent, from 2.93 percent the day before. Gold rose $10.10, or 0.8 percent, to $1,203.70 an ounce.
In company news:
— Blackberry jumped 97 cents, or 16 percent, to $7.22. The struggling smartphone maker posted a $4.4 billion loss but also said it would outsource its hardware business to focus on software and services.
— Red Hat, an open-source software developer, jumped $7.10, or 15 percent, to $56.10, one of the biggest increases in the S&P 500 index. Red Hat's adjusted earnings came in well ahead of Wall Street's estimates.