Stocks closed sharply higher Monday, led by big gains in industrial and energy stocks.

The rally gave the Standard & Poor's 500 index its fifth daily gain in a row.

At the close on Wall Street, The Dow Jones industrial average had gained 304.1 points, nearly 2 percent, to 16,776.4. The S&P 500 rose 35.7 points, about 1.8 percent, to 1,987.1. The Nasdaq composite rose 73.5 points, about 1.6 percent, to 4,781.3.

About the same time, the price of benchmark U.S. crude oil rose 86 cents, nearly 2 percent to $46.40 a barrel on the New York Mercantile Exchange.

General Electric led the industrial sector higher, gaining 5.3 percent, after activist investor Nelson Peltz bought a stake in the company.

Chevron climbed 3 percent.

Twitter jumped nearly 7 percent after the company named co-founder Jack Dorsey its permanent CEO.

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Alcoa Inc. gained 9.4 percent and Dow Chemical Co. gained 4.2 percent to pace a climb in raw- materials. Mining equipment maker Joy Global Inc., the worst performer in the S&P 500 last quarter, ended up 6.7 percent on the way to its best gain in eight weeks.

"Pushing out interest rate hike expectations to next year has been critical," said Michael Purves, chief global strategist at Weeden & Co in Greenwich, Connecticut. "Today is simply a response to oversold conditions."

This story was compiled with reports from Bloomberg News and The Associated Press.