US stocks have rallied to start off the second quarter on a strong note, as upbeat manufacturing numbers from China and the United States eased worries about slowing global growth.
The benchmark S&P 500 index, which is only 2.2 per cent below its record closing high in September, triggered a "golden cross" pattern, in which its 50-day moving average crosses above its 200-day moving average. Many believe the technical signal could portend more short-term gains.
Rising equities were spurred by data showing China's manufacturing sector unexpectedly returned to growth in March for the first time in four months.
"The Chinese numbers bounced back, and people are taking more risk today because of it," Michael O'Rourke, chief market strategist at JonesTrading, said.
US manufacturing numbers for March were also better than expected, helping investors overlook soft retail sales data for February.
The Dow Jones Industrial Average rose 329.74 points, or 1.27 per cent, to 26,258.42, the S&P 500 gained 32.79 points, or 1.16 per cent, to 2,867.19, and the Nasdaq Composite added 99.59 points, or 1.29 per cent, to 7,828.91.
Concerns about a global economic slowdown have dimmed sentiment since the Federal Reserve announced in January that its monetary tightening would end earlier than expected, as it cited "cross currents" affecting the economy.
The shift in Fed policy drove yields on 10-year Treasury notes below those of three-month bills last week for the first time in more than a decade.
Yields on 10-year notes have since risen back above three-month bill rates and on Monday hit a one-week high. S&P 500 bank shares also jumped 2.9 per cent.
But with the first-quarter corporate earnings reporting season two weeks away, investors are bracing for what may be the first US profit decline since 2016. Analysts expect quarterly earnings to fall 2 per cent.
Auto shares rose after China's State Council said the country would continue to suspend additional tariffs on imports of US vehicles and auto parts after April 1.
Chipmakers, which draw much of their revenue from China, also rose.
Lyft Inc shares, meanwhile, tumbled 11.9 per cent to end below their IPO price.
