NEW YORK (Reuters) - U.S. stocks rallied on Monday, starting off the second quarter on a strong note, as upbeat manufacturing numbers from China and the United States eased worries about slowing global growth.
The benchmark S&P 500 index, which is only 2.2 percent below its record closing high in September, triggered a “golden cross” pattern, in which its 50-day moving average crosses above its 200-day moving average. Many believe the technical signal could portend more gains for stocks in the short term.
Gains in global equities were spurred by data showing that China’s manufacturing sector unexpectedly returned to growth in March for the first time in four months.
“The Chinese numbers bounced back, and people are taking more risk today because of it,” said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.
U.S. manufacturing numbers for March were also better than expected, helping investors overlook soft retail sales data for February.
The Dow Jones Industrial Average rose 329.74 points, or 1.27 percent, to 26,258.42, the S&P 500 gained 32.79 points, or 1.16 percent, to 2,867.19, and the Nasdaq Composite added 99.59 points, or 1.29 percent, to 7,828.91.
Concerns about a global economic slowdown have dimmed sentiment since the Federal Reserve announced in late January that its monetary tightening would end earlier than expected, as it cited “cross currents” affecting the economy. The shift in Fed policy drove yields on 10-year Treasury notes below those of three-month bills last week for the first time in more than a decade.
Yields on 10-year notes have since risen back above three-month bill rates and
