Consumers are getting more confident about the economy, and Wall Street is tagging along.
Stocks surged Tuesday, posting their first big win in a week after a research group said consumer sentiment rose in May to the highest level since September. Major stock indicators jumped more than 2 percent, including the Dow Jones industrial average, which added 196 points.
The day's gains nudged the Standard & Poor's 500 index back into the plus column for the year and leaves the Nasdaq composite index up 11 percent in 2009. The Dow is still down 3.5 percent.
Investors started buying enthusiastically after the Conference Board's Consumer Confidence Index vaulted to 54.9 from 40.8, soaring past the 42.3 that economists surveyed by Thomson Reuters forecast.
The Dow rose 196.17, or 2.4 percent, to 8,473.49. The S&P 500 index rose 23.33, or 2.6 percent, to 910.33, and the Nasdaq rose 58.42, or 3.5 percent, to 1,750.43.
Analysts said the day's gains reveal how jumpy the market still is and warned that it could show a similar quick reaction to bad news.
Investors have been questioning whether the stock market's massive two-month run can be sustained given the continuing weakness in the global economy in areas like housing and unemployment.
Tech stocks showed some of the biggest gains in part after an analyst raised her rating on Apple Inc. saying the growth of the company's iPhone device has been underestimated. Apple rose $8.28, or 6.8 percent, to $130.78.
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