Stocks rose sharply Tuesday as strong economic data on U.S. construction and manufacturing calmed worries that the country might be slipping into another recession.

Crude oil prices, which climbed 1.72 percent to close at $34.33 a barrel, also helped lift the overall stock market to a seven-week high.

After a calamitous start to the year for global stocks, all three major U.S. indices climbed more than 2 percent on the first day of March. The tech-heavy Nasdaq led the way with a 2.89 percent gain. The Dow Jones industrial average was up 349 points, or 2.11 percent, while the Standard & Poor’s 500-stock index rose 2.39 percent.

Markets were buoyed by news that construction spending in January rose 1.5 percent to $1.14 trillion, the highest reading since late 2007, according to a Commerce Department report released Tuesday morning.

There were also signs that the battered manufacturing sector may be stabilizing, as data from the Institute for Supply Management showed that U.S. factory activity in February shrank less than investors had expected.

“Today is a sign that spring has arrived,” said Torsten Slok, chief international economist for Deutsche Bank Securities in New York.

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Stronger-than-expected manufacturing data is particularly promising, he added, because it shows that the appreciating dollar – which has dragged down U.S. economic growth for several quarters and dealt a particular blow to manufacturers – may have less of a negative impact on the broader economy in the coming quarters.

“People are now concluding that maybe this thing holding the economy back – the dollar appreciating – is no longer such a significant issue,” he said.

Global stocks have endured a tumultuous run, with February marking the fourth consecutive month of losses. Economic weakness in China has continued to reverberate worldwide, while oil prices have struggled to bounce back from 12-year lows.

Tuesday, however, brought signs of optimism.

Financial and technology companies, among the hardest hit this year, fared particularly well. Apple’s stock climbed nearly 4 percent Tuesday to close at $100.53. Meanwhile, shares of Lincoln National, Prudential Financial and Citigroup all rose more than 6 percent.


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