The Dow closed at its highest level in more than four years in a broad rally on Tuesday after U.S. manufacturing expanded at a faster pace than expected in April, easing jitters about a slowdown in the economic recovery.
Based on the latest available data, the Dow Jones industrial average was up 65.77 points, or 0.50 percent, to end unofficially at 13,279.40. The Standard & Poor's 500 Index was up 7.92 points, or 0.57 percent, to finish unofficially at 1,405.83. The Nasdaq Composite Index was up 4.08 points, or 0.13 percent, to close unofficially at 3,050.44.
Safe-haven Treasuries prices fell, while gold retreated from two-week highs as the data dampened speculation the Federal Reserve would adopt fresh monetary easing measures to boost growth.
Overseas trading was limited, with many markets in Asia and Europe closed for the May Day holiday.
The S&P 500 index soared 1 percent and the Dow Jones industrial average hit its highest level since December 2007 after the Institute for Supply Management said its index of national factory activity rose to 54.8 from 53.4 in March, exceeding expectations of 53.0.
"The view on the economy has swung from optimism to pessimism of late and this could bring us back to the middle," said Nick Bennenbroek, head of FX strategy for North America at Wells Fargo in New York. "ISM suggests there's no real reason to get too concerned about the path of the U.S. economy at this point."
