US stocks have began the new year on a jubilant note, pushing the benchmark Standard & Poor's 500 index to its biggest percentage gain since mid-October.
An unexpectedly strong jump in US manufacturing activity prompted hopes the struggling economy is on the mend.
The Dow Jones industrial average jumped 265.89 points, or 3.19 per cent, to 8,607.52, less than a point below its session high, according to the latest data. All but one of the Dow's 30 components closed higher.
Activity in US factories jumped in December after three months of declines, the Institute for Supply Management (ISM) said. The ISM's index of manufacturing business conditions rose to 54.7 from 49.2 in November, blowing past expectations of 50.3. In the survey, 50 marks the threshold between growth and contraction.
The Standard & Poor's 500 Index rallied 29.21 points, or 3.32 per cent, to 909.03, its high for the day. The S&P 500, like the Dow, also scored its biggest percentage gain since October 15th.
The technology-laden Nasdaq Composite Index soared 49.34 points, or 3.69 per cent, to 1,384.85, just a fraction of a point below its session high.