The Dow Jones industrial average jumped nearly 200 points yesterday to recoup most of its losses for the week, while demand for safe-haven holdings like Treasuries wilted.

The Commerce Department's report that gross domestic product rose at an annual rate of 3.5 percent in the third quarter reinvigorated investors that had dumped stocks for much of the week on signs of a slowing housing market and a disappointing report on consumer confidence.

The economic growth came in ahead of the 3.3 percent rise forecast by economists polled by Thomson Reuters. It was the strongest growth in two years and broke four straight quarters of declines. Coming on the 80th anniversary of the stock market crash that preceded the Great Depression, it was the best indication yet that the longest recession since then has ended.

But many analysts caution that it will be hard to sustain the growth at the pace seen in the third quarter.

Analysts say the recovery is likely to be bumpy as consumers try to pay down debt and as credit for small businesses remains tight.

But such concerns were pushed aside yesterday.

The Dow Jones industrial average rose 199.89, or 2.05 percent, to 9,962.58. The broader Standard & Poor's 500 index rose 23.48, or 2.25 percent, to 1,066.11, while the Nasdaq composite index rose 37.94, or 1.84 percent, to 2,097.55.

The ICE Futures US dollar index, which measures the dollar against other major currencies, fell after five straight days of gains. The weaker dollar made commodities more attractive for foreign buyers. Gold rose $16.60 to close at $1,047.10 an ounce on the New York Mercantile Exchange, while crude oil soared $2.41 to settle at $79.87 a barrel.

Other economic news was mixed. The number of people claiming jobless benefits for the first time dropped less than expected last week. The Labor Department said workers filing first-time claims for unemployment dipped 1,000 to a seasonally adjusted 530,000 last week. Economists expected a larger decline to 521,000.

However, the number of people continuing to receive unemployment benefits dropped sharply by 148,000, to 5.8 million.

Unemployment and consumer spending remain the economy's biggest hurdles. Analysts said the market's renewed confidence after yesterday's GDP report could easily be shaken by the government's monthly employment report or retail sales, especially as the crucial holiday shopping season approaches.

In earnings news, Motorola Inc. shares climbed nearly 10 percent after the maker of cell phones posted its second straight quarterly profit after months of heavy losses. The stock rose 78 cents to close at $8.74.

The Russell 2000 index of smaller companies rose 13.86, or 2.45 percent, to 580.22.

Britain's FTSE 100 rose 1.1 percent, Germany's DAX index rose 1.7 percent, and France's CAC-40 gained 1.4 percent. Japan's Nikkei stock average fell 1.8 percent.