Wall Street jumped on Wednesday as an increase in U.S. manufacturing activity and new signs of growth in China and Australia boosted investor confidence on the state of the global economy.
Major indexes rose more than 2 percent after a closely watched report showed U.S. manufacturing grew faster than forecast and chalked up a 13th straight month of expansion.
That ISM manufacturing number looks pretty solid, particularly since everybody has been dreading just any data because it's been so bad, said Dan Cook, senior market analyst at IG Markets in Chicago.
It's backing up what happened in China and Australia.
U.S. markets rose initially after reports showed China's manufacturing staged a moderate rebound, while Australia's economy grew at its fastest pace in three years on a boost in household spending.
The Dow Jones industrial average <.DJI> gained 220.54 points, or 2.20 percent, to 10,235.26. The Standard & Poor's 500 Index <.SPX> climbed 25.92 points, or 2.47 percent, to 1,075.25. The Nasdaq Composite Index <.IXIC> advanced 55.45 points, or 2.62 percent, to 2,169.48.
Shares of aluminum producer Alcoa Inc
The overseas data helped boost oil futures 2.6 percent to $73.80 a barrel and lifted the energy sector. The NYSE Arca Oil index <.XOI> rose 3.6 percent.
Investors shrugged off a report from ADP Employer Services that showed U.S. private firms unexpectedly cut 10,000 jobs in August and government data indicating U.S. construction spending fell to its lowest rate in 10 years.
Shares of Burger King Holdings Inc
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)