Wall Street closes higher after US growth figures

NYSE traders Image copyright EPA

(Close): Wall Street finished higher after positive US economic growth data and a slight rise in oil prices.

The Dow Jones rose 165.65 points, or 1% to 17,417.2.

The S&P 500 gained 17.82 points, or 0.9%, to 2,038.97 while the tech-heavy Nasdaq climbed 32.19 points, or 0.7%, to 5,001.11.

Chipotle continued its decline after the chain announced further cases of E. coli at its restaurants. The stock lost 5% after having lost 3.5% on Monday.

Earlier, the US Commerce Department revised its third-quarter economic growth figures to an annual rate of 2% from the 2.1% reported last month. However, that downward revision was less steep than analysts expected.

US crude oil futures were up 33 cents to $36.14 a barrel on the New York Mercantile Exchange.

Brent crude, which is used to price international oils, fell 24 cents to $36.11 a barrel in London.

Trading volumes were light with several portfolios closed for the year and many traders taking vacation.

Light trading is expected through the rest of the week, with stock markets operating a shortened session on Thursday and closing on Friday for Christmas.

"Investors are either done for the year or are setting up their portfolios for 2016, buying this year's winners or doing reallocation to their portfolios," said J.J. Kinahan, chief strategist at TD Ameritrade.