U.S. stocks climbed on Monday as European industrial data eased concerns about a slowdown in global growth and rising oil prices lifted energy shares.
For the past few months, worries about debt problems in Greece and other European nations have weighed on the U.S. stock market on concerns that the euro zone's fiscal problems could hamper a global economic recovery.
The data spurred demand for shares of U.S. companies that rely on overseas sales, with the euro gaining 1.5 percent to hit $1.2295 -- a session high against the dollar. Heavy equipment maker Caterpillar Inc advanced 3.6 percent to $62.38.
Investors scooped up chip makers' stocks and that helped push the Nasdaq up more than 1 percent. Technology bellwether Intel Corp up 2.3 percent at $21.12, while an index of semiconductor shares <.SOXX> also rose 2.3 percent.
The rally on Wall Street follows strong advances in European and Asian stock markets, as well as the S&P 500's 2.5 percent gain for last week. The S&P 500 is still down about 9.3 percent from its April 23 closing high for the year.
Euro-zone industrial output surged in April, achieving the biggest year-on-year percentage gain in almost two decades.
I think that surprised global traders that the industrial side of Europe was stronger than expected, said Fred Dickson, chief market strategist of D.A. Davidson & Co. in Lake Oswego, Oregon.
The Dow Jones industrial average <.DJI> was up 96.02 points, or 0.94 percent, at 10,307.09, after briefly rising more than 1 percent. The Standard & Poor's 500 Index <.SPX> was up 11.57 points, or 1.09 percent, at 1,103.17. The Nasdaq Composite Index <.IXIC> was up 32.07 points, or 1.43 percent, at 2,275.67.
U.S. crude oil futures climbed $1.85, or 2.5 percent, to $75.53 per barrel after the European industrial production data helped renew optimism about a recovery and increased demand for fuel.
The S&P energy sector <.GSPE> gained 1.3 percent, while Chevron Corp up 1.6 percent at $75.26.
The S&P 500 was trading just above the psychologically key 1,100 level, and just below 1,108, its 200-day moving average.
SanDisk Corp jumped 7.5 percent to $47.95 after financial weekly Barron's, citing an analyst, said the stock could soar on a boom in demand for flash memory.
BP Plc's U.S.-traded shares continued their slide, falling 7.7 percent at $31.34.
U.S. President Barack Obama plans to press the company to set up an escrow account to pay damage claims by individuals and businesses hurt by BP's oil spill in the U.S. Gulf of Mexico. The British company said the cost of the spill hit $1.6 billion.
(Reporting by Caroline Valetkevitch; Additional reporting by Rodrigo Campos; Editing by Jan Paschal)