* New home sales unchanged in August
* Durable goods orders fall but business spending rebounds
* Stocks up: Dow 1.7 pct, S&P 1.8 pct, Nasdaq 1.7 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to open, adds new home sales data)
By Angela Moon
NEW YORK, Sept 24 (Reuters) - U.S. stock indexes rose almost 2 percent on Friday as a rebound in business spending and steady home sales in August fueled investor optimism and provided firmer ground for a sustainable rally.
The data add to a recent line of positive economic indicators that reflect improving parts of the U.S. economy. The S&P 500 <.SPX> is up 9 percent from a month ago.
Despite data showing new U.S. single-family home sales were flat in August, investors poured money in stocks, suggesting they may have finally come on board with the move in equities. The S&P 500 had crossed above technical lines several times in the past few days but had been unable to sustain the gains.
"Everyone knows that the housing market is weak and is going to remain weak. We're still in a hangover from the tax credit expiring. So this isn't a good number, but the market isn't selling off on it," said Michael O'Rourke, chief market strategist at BTIG LLC in New York.
Data on Friday showed that overall, new orders for long-lasting U.S. manufactured goods fell more than expected in August to post their largest decline in a year as bookings for aircraft and motor vehicles tumbled. But excluding transportation, orders rose more-than-expected, suggesting a healthy rebound. [ID:nN23141647] [ID:nCLAOKE64S]
The Dow Jones industrial average <.DJI> was up 175.43 points, or 1.65 percent, at 10,837.85. The Standard & Poor's 500 Index <.SPX> was up 19.79 points, or 1.76 percent, at 1,144.62. The Nasdaq Composite Index <.IXIC> was up 37.88 points, or 1.63 percent, at 2,364.96.
Nike Corp
Advanced Micro Devices Inc
Boosting investor sentiment was the share offering of Brazilian state oil company, Petrobras. The sale of nearly $70 billion in shares surpassed expectations, erasing concerns that stocks were less attractive assets. For details, see [ID:nN2499993]
On the Nasdaq, Apple Inc
U.S. gold futures surged to an all-time high at $1,300 an ounce in European trading on Friday as investors turned to the precious metal as a refuge from volatility on the currency markets. (Editing by Padraic Cassidy)