U.S. stocks closed higher Monday, setting a strong tone for the start of the second quarter as optimistic manufacturing data from the United States and China eased concerns about the global economic slowdown.
The S&P 500 index is only 2.2% lower than the record closing high set in September last year, triggering the "Golden Cross", i.e. the 50-day moving average crosses the 200-day moving average. Many people believe that this technical signal may herald a further rise in the stock market in the short term.
Data show that China's manufacturing sector unexpectedly resumed growth in March for the first time in four months, boosting global stock markets.
"China's economic data have rebounded, so people are more willing to take risks today," said Michael O'Rourke, chief market strategist at Jones Trading.
U.S. manufacturing data in March were also better than expected, helping investors ignore weak February retail sales data.
The Dow Jones industrial average. DJI rose 329.74 points, or 1.27%, to 26,258.42; the S&P 500 index. SPX rose 32.79 points, or 1.16%, to 2,867.19; and the Nasdaq index. IXIC rose 99.59 points, or 1.29%, to 7,828.91.
Fears of a global slowdown have hit stock market sentiment after the Federal Reserve announced at the end of January that monetary tightening would end earlier than expected due to "multiple factors" affecting the economy. For the first time in more than a decade, the Fed's policy shift pushed the yield of 10-year U.S. Treasury bonds down to below the yield of three-month Treasury bills.
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