Stocks kicked off the third quarter on Monday with gains of one per cent or more, supported by data that showed United States manufacturing bounced back and construction spending near a four-year high.
All but one of the top 10 S&P 500 sectors were higher in a broad advance that built on the strongest first half of a year since 1998 for the benchmark index.
Reuters reports that the S&P 500 gained 12.6 per cent in the first six months of 2013.
This year’s gains have largely been driven by the Federal Reserve’s bond-buying policy, which helped lift the Dow industrials and the S&P 500 to record closing highs in late May.
The rally was interrupted by concern about the future of the Fed’s stimulus programme, which triggered a selloff in stocks. June was the S&P 500’s first negative month since October.
Stocks extended strong gains mid-morning as data from the Institute for Supply Management showed US manufacturing activity grew in June, rebounding from an unexpected contraction in May.
Construction spending neared a four-year high in May, according to the Commerce Department.
“People saw ISM was stronger and slightly higher than consensus and decided to run with it,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.