The U.S. economy is on track to grow at a 2.7 percent annualized pace in the third quarter, based on the stronger-than-forecast rise on construction spending in August and a surprise acceleration in factory activity in September, the Atlanta Federal Reserve’s GDP Now forecast model showed on Monday.

The latest estimate for third-quarter gross domestic product was faster than the 2.3 percent growth rate calculated on Sept. 29, the Atlanta Fed said.

U.S. stocks started the fourth quarter on a strong note on Monday after factory data pointed to underlying strength in the economy, Reuters reported.

The encouraging data helped world shares touch their latest record highs on Tuesday, while lifting the dollar to its loftiest in 1-1/2 months.

“This year has been one of the strongest year ever, not from a percent gain standpoint, but from a lack of the correction or lack of a pullback,” said Adam Sarhan, chief executive of 50 Park Investments in New York.

“So to me, the market is cautiously optimistic.”

Investors are also watching out for progress on President Donald Trump’s tax reform plan, which calls for lowering corporate tax to 20 percent.