Dow kicks off August with 208 point gain

The stock market began August with a huge rally after various reports revived investors' faith in the global recovery.

The Dow Jones industrial average rose 208 points Monday to its highest close in three months. All the major stock indexes rose about 2 percent.

August's first session brought a stream of news to reassure investors worried about a slowing of economic growth in the United States, China and Europe. Manufacturing, which has been one of the brightest spots in the U.S. economy, was a common thread. A manufacturing report for the 16 countries that use the euro was revised higher for July and showed that the European economy is recovering faster than expected.

The Dow rose 208.44, or 2 percent, to 10,674.38. It was the Dow's best first August trading day since 1934. August in general is seen as a volatile month for stocks, largely because of the light volume. The Standard & Poor's 500 index rose 24.26, or 2.2 percent, to 1,125.86, while the Nasdaq composite index rose 40.66, or 1.8 percent, to 2,295.36.- AP