New York: US stocks vaulted to four-month highs as sentiment was lifted by a surprisingly upbeat report on US home sales and data on Chinese manufacturing that raised hopes for a global economic recovery.
The Dow Jones Industrial Average rallied 219.27 points (2.67%) to 8,431.68 at the closing bell, as blue chips hit their highest level since mid-January.
The tech-heavy Nasdaq lifted 41.36 points (2.41%) to 1,760.56 while the Standard & Poor’s 500 index climbed to its best close since January, jumping 30.33 points (3.46%) to a preliminary close of 907.85.
Market action came as a real estate industry group said pending US home sales rose 3.2% in March after a 2% increase in February.
The index “is at a three-month high and things certainly look a bit less bad than in the dark days at the turn of the year,” said Ian Shepherdson at High Frequency Economics.
Analysts at Charles Schwab & Co said that “a positive manufacturing report in China, which fueled a strong rally in Asia, is helping improve sentiment on the Street and further the argument that the worst of the global recession may be in the rearview mirror.”