The world's largest economy is still facing many challenges ahead, as the worst financial crisis since the Great Depression continue to hammer economic activity, however emerging signs recently has been indicating the pace of slowdown is indeed easing, sparking hopes over a recovery towards the end of this year or maybe next year.

The pending home sales index for the month of March was released today, the index rose unexpectedly to 3.2 percent following the prior revised rise of 2.0 percent and well above median estimates of a flat estimate.

On the other hand, construction spending for the month of March was released showing a surprise rise to 0.3 percent following the prior revised drop of 1.8 percent and also above median estimates of a 1.7% drop.

The housing market continued to be a drag on economic growth over the course of the first quarter of 2009, as the economy contracted by 6.1 percent on the back of the housing, inventories, and investments, as all three continued to weigh down on economic growth.

The housing sector might be reaching its bottom this year, however we still need further confirmation that the housing sector is stabilizing, as February's data signaled some stabilization, however the data released in March signaled that the housing sector is till suffering the aftermath of the ongoing recession.

Meanwhile stocks rose after the surprise rebound in pending home sales, as investors were encouraged by further signs indicating that the ongoing recession is indeed easing, and that economic activity might be on course to recovery.

The DJIA index rose in today's early trading session by 180.00 points or 2.19 percent and was last traded at 8392.41, while the S&P 500 index rose by 19.89 points or 2.27 percent and was last traded at 897.41, and the NASDAQ Composite index rose by 33.76 points or 1.96 percent and was last traded at 1752.96, data as of 10:23 New York time.