Industrial and technology stocks pulled the market sharply higher Tuesday after Boeing Co. said it was boosting production and an industry group forecast that demand for computers would increase.
The Dow Jones industrial average rose 213 points to its highest close since May 19. Major stock indexes rose more than 2 percent.
Industrials made some of the biggest moves following upbeat news from Boeing Co. and Illinois Tool Works Inc. Boeing rose 4 percent after increasing production of the 737 jet. Boeing said customers are adding to existing orders and placing new ones. Illinois Tool rose about 2.5 percent after it raised the lower end of its fiscal second-quarter earnings target.
More good news on industrials came from the New York Federal Reserve, which said regional manufacturing expanded for an 11th straight month in June.
"We're still seeing factories and manufacturing help provide a little stimulus for the economy here," said Michael Church, president at Addison Capital Group in Philadelphia.
A gain in the euro and a drop in the dollar signaled that traders are less worried that debt problems in Europe will disrupt a global recovery.
The Dow rose 213.88, or 2.1 percent, to 10,404.77. The Standard & Poor's 500 index rose 25.60 points, or 2.4 percent, to 1,115.23. The tech-dominated Nasdaq composite index rose 61.92 points, or 2.8 percent, to 2,305.88.- AP