The market reaction was in sharp contrast to the previous government's mini budget, which prompted a wave of market turbulence and ended with the departure of Liz Truss from 10 Downing Street.
Dr Darren Shannon, lecturer in Quantitative Finance at the University of Limerick describes the markets as"a meeting point between those who want to lend money and those who want to borrow money, those who want to sell an item, a service or product and those who want to buy that item, service or product".
Dr Shannon said if you are tracking the stock market, you are essentially tracking a proxy for how the economy is working at that moment in time."If you are seeing large rises in a stock market, in theory that should mean that the economy is going really well. If it's dropping then vice-versa, you would expect that the economy isn't doing really well."
"Markets are a good snapshot of how an economy is performing, and when countries or nations become concerned about how their economy is performing, the markets start to reflect that," Kathryn Hannon, Head of Private Clients at asset management group, Gresham House, explained. Jeremy Hunt's autumn statement, on the other hand, received a muted reaction from the markets which was the desired response, according to Victoria Scholar, Head of Investments at Interactive Investor.