Investing.com - U.S. shares rallied higher Tuesday, as the Dow Jones Industrials hit their highest level since 2007, on strong manufacturing numbers despite continued euro zone debt fears.
At the close of U.S. trade, the Dow Jones Industrial Average gained 0.50%, the S&P 500 advanced 0.73%, while the Nasdaq Composite eased higher by 0.21%.
Fuelling the stock market rally, the U.S. Institute for Supply Management reported the manufacturing purchasing managers’ index spiked to 54.8 in April, from 53.4 the previous month.
Analysts had expected the index to fall to 53.0 in April.
The bullish data arrived on the heels of a series of weaker-than-expected U.S. economic reports sparking speculation over further stimulus measures by the Federal Reserve.
Meanwhile in China, official data showed that an index of Chinese manufacturing activity rose to a 13-month high of 53.3 in April from 53.1 the previous month, but the data came in slightly below forecasts for a reading of 53.6.
However, shares remained under pressure amid ongoing concerns over the outlook for the single currency bloc, after official data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the region.
Investors remained nervous ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.
Uber retailer, Sears, soared 17% after reporting strong first quarter profits.
Avon Products gave back 7.9% after reporting first quarter estimates missing forecasts.
At the close of European trade, the EURO STOXX 50 eased higher by 0.1%, France's CAC 40 and Germany’s DAX were closed for the holiday. Meanwhile, in the U.K. the FTSE 100 gained 1.30%.
Traders are awaiting the U.S. ADP payrolls, New Zealand’s unemployment rate and the euro zone’s unemployment rate on Wednesday.
At the close of U.S. trade, the Dow Jones Industrial Average gained 0.50%, the S&P 500 advanced 0.73%, while the Nasdaq Composite eased higher by 0.21%.
Fuelling the stock market rally, the U.S. Institute for Supply Management reported the manufacturing purchasing managers’ index spiked to 54.8 in April, from 53.4 the previous month.
Analysts had expected the index to fall to 53.0 in April.
The bullish data arrived on the heels of a series of weaker-than-expected U.S. economic reports sparking speculation over further stimulus measures by the Federal Reserve.
Meanwhile in China, official data showed that an index of Chinese manufacturing activity rose to a 13-month high of 53.3 in April from 53.1 the previous month, but the data came in slightly below forecasts for a reading of 53.6.
However, shares remained under pressure amid ongoing concerns over the outlook for the single currency bloc, after official data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the region.
Investors remained nervous ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.
Uber retailer, Sears, soared 17% after reporting strong first quarter profits.
Avon Products gave back 7.9% after reporting first quarter estimates missing forecasts.
At the close of European trade, the EURO STOXX 50 eased higher by 0.1%, France's CAC 40 and Germany’s DAX were closed for the holiday. Meanwhile, in the U.K. the FTSE 100 gained 1.30%.
Traders are awaiting the U.S. ADP payrolls, New Zealand’s unemployment rate and the euro zone’s unemployment rate on Wednesday.